According to the US Commerce Department, furniture and home-furnishing stores have hit the highest monthly tally in the last several years. It seems consumers are not afraid to spend money on the big ticket items and the majority of these purchases are for new homes and upgrades.
“The strength seen in the housing-related component of the retail sales report does offer some encouraging on the tone of the housing market recovery,” said Millan Mulraine, deputy head, U.S. research and strategy, at TD Securities. “It reinforces the current narrative of a rebound in housing market recovery.”
“The combination of strength at building material stores and at furniture outlets definitely suggests that homeowners are spending money on their homes,” said Stephen Stanley, chief economist at Pierpont Securities.