US tips: retailers bucking the downtrend

It seems that a combination of higher energy and raw materials costs and the hurricane season are beginning to take their toll on US spending habits: Standard & Poor’s expects retail sales in the pre-Christmas period will rise by only 3.5%-4.0%, compared with the 6.7% recorded in 2004.

It seems that a combination of higher energy and raw materials costs and the hurricane season are beginning to take their toll on US spending habits: Standard & Poor's expects retail sales in the pre-Christmas period will rise by only 3.5%-4.0%, compared with the 6.7% recorded in 2004.

As consumption accounts for two-thirds of America's GDP, this means that the spotlight is on the consumer as never before, says Jennifer Ablan on Barrons.com, but also that investors should approach the retail sector with some caution.

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