COLLEGE PARK, Md., Dec. 13 (UPI) -- The former chief economist of the U.S. International Trade Commission says Wednesday's strong retail sales figures stem from spending by the rich.
The Commerce Department said November retail and food sales were up 1 percent, much higher than expected.
"Sales of upscale items remain strong. These are powered by recent stock market gains and strong employment and pay increases for professionals and managers well positioned to benefit from globalization, for example in investment banking, law, top levels of corporate management and accounting," said Peter Morici, currently a University of Maryland professor.
"Sales at many mid-scale retailers are registering only modest gains over last year. Household incomes are still rising but consumer caution reflects the impact of the flagging housing market and layoffs in manufacturing and new home construction. Middle class white collar and blue collar workers continue to spend but with a more cautious eye."
