US: The surge in retail sales and factory orders last month, suggests the US economy may be slowly rejuvenating, according to Inside Retailing.

Retailers have reported that sales rose in February by the most significant amount since November 2007, while orders to US factories in January experienced the biggest rise in four months. This represents the best display since September and an indication that manufacturing is assisting the economic recovery.

Sales up - employment still down

These results however do not necessarily suggest a decrease unemployment, unless such changes force factories to take on more staff. Initial jobless claims have been severe in recent weeks; a result of last month's snowstorms in the Eastern United States.

The strong retail-store sales report reflected gains from a broad range of merchants.

"I am surprised by the broader strength in the figures... Everyone is participating in this gain. And that's a good sign for the retail sector and for the economy overall," International Council of Shopping Centres chief economist, Mike Niemira said.

The results came as a surprise, with recently issued weak reports on consumer confidence. High unemployment could potentially slow the economic recovery if it reduces consumers' ability to spend. The economy has lost 8.4 million jobs since the beginning of the recession.