video transcript

The Daily Digit today is 5.2. U.S. retail sales were up 5.2% in 2012, and ended the year with a bang as Americans shrugged off the threat of higher taxes and bought cars, furniture and clothes. Internet spending was also a bright spot. The gains could be another good sign for fourth-quarter growth. Despite an uptick in first-time applications for jobless claims, the labor market continues to grow at a moderate pace, which supports consumer spending. Also, the economy has been showing some muscle in other sectors, which could put consumers in a relatively good shopping mood... factory activity, government spending, and a rise in exports are all factors pointing to modest economic growth. But higher taxes which kicked in this month and a looming fight over raising the debt ceiling could put a dent in spending as the year begins.