February '07 Posted Slow Retail Sales in New York

New York's retailers had a slow beginning in the spring season due to February's unseasonably cold weather.

New York's retailers had a slow beginning in the spring season due to February's unseasonably cold weather that chilled the lightweight apparel demand and left retailers with unsatisfactory sales. Also slowing economy, especially the declining housing market can challenge the buyers in coming months, as per the news published on Business Week.

"People don't necessarily feel less wealthy because the market falls all of the sudden or their housing value is lower, but if those factors persist over the next six months, it may affect long-term behavior," said Frank Badillo, vice president and senior retail economist at Retail Forward Inc., a retail consulting company, in news published on Philly.com.

Shoppers will become prudent due to the continuing slump in housing market, and stock market fall down during Mar 01-Mar 07, 2007 may also cause customers to be more conservative. Higher gasoline costs also remain another reason for slow retail sales.

A huge decline in retail sales and construction turned the housing market of New York from the economy's stars to a major drag that subtracted over a percentage point from the whole growth in the third as well as forth quarter of 2006. The Q4 decline in cost was led by 4.2% fall in the Midwest, by 3.7% drop in South and 2.5% decline in the Northeast.

New York's housing market also slumped because of low govt. spending on defense. However, interest rates hike by Federal Government over the last 2 years have also chilled the New York's housing market.

As per a research analyst at RNCOS, "As the housing slump is steep, its effects on customers may be slighter than numerous fears. Surging home values have added trillions of dollars in to homeowners' safes. However, due to cold weather, the spring clothes demand receded, and, because the retailers had done great job to clearing out the winter merchandise in the strong sales period during January, there was small for customers to buy".

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