U.S. Retail Sales Rise | Payday Loans and Spending Increase

Payday loans more popular

Retail spending has gone up for the first time in six months.

More people are discovering payday loans can help in tough economic times. As more consumers from different demographics are exercising their financial options, the retail market took an unexpected turn in January.

Sliding sales pattern broken

For the first time in six months, the downward spiral that has been plaguing U.S. retail sales came to a stop. In fact, retail sales rose 1 percent after six straight months of decline. Sales had fallen 3 percent in December.

But not for long

Of course, economists and other market analysts warn that this seems too good to be true. Jobs are still being lost every day, and that means this increase in spending will not last long, according to Tom Porcelli, a senior economist at Castlestone Management Ltd.

Payday loans and spending linked?

Economists do not draw any parallels between payday loans and increased spending. Instead, they say the higher sales are because of higher gas prices and post-holiday sales.

Economists see no sea change

Market analysts are quick to say that this does not signal a change in the economy.

Economists anticipate household purchases will tumble further in the first half of the year, underscoring the case for the $789 billion stimulus package under debate in Congress, according to Bloomberg.com. ... click here to read the rest of the article titled "U.S. Retail Sales Rise | Payday Loans and Spending Increase"