The Conference Board announced Consumer Confidence increased in April 2011 to 65.4, up from 63.4 in March 2011, a three-year high. Analysts noted consumers’ short-term outlook improved, although rising inflation causes some concern.

The US Commerce Department reported a preliminary total for US retail sales for February 2011 of $309.852 billion, up from $308.035 billion for January 2011, and reported a preliminary total for US retail inventories for February 2011 of $447.435 billion, down from $447.579 billion for January 2011.

As for March, the Department reported that retail sales increased 0.4%, the ninth consecutive gain, although the rise was only 0.1% if gasoline sales were excluded. The biggest loser, auto sales, fell 1.7%, the largest drop since February 2010. On the positive side, furniture store sales rose 3.6% from February. More jobs and a payroll tax cut are expected to continue the spending rebound.

Expanding that data to include manufacturers, the US Census Bureau reported that the combined value of distributive trade sales and manufacturers’ shipments for February, adjusted for seasonal and trading-day differences but not for price changes, was estimated at $1.174 trillion, up 0.2% from January 2011 and up 10.9% from February 2010. The Bureau also reported manufacturers’ and trade inventories, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $1.457.9 trillion, up 0.5% from January 2011 and up 9.1% from February 2010.

The Conference Board Employment Trends Index increased in March for the sixth consecutive month. The index now stands at 100.9, up from February’s revised figure of 100.3. The index is up over 8% from a year ago.

The Standard & Poor’s/Case-Shiller composite index of 20 metropolitan areas decreased 3.3% in February 2011 from the month before. Analysts noted little good news in housing, with prices falling and new sales and construction disappointing. Atlanta, Cleveland and Las Vegas join Detroit as cities with home prices below 2000 levels, with Phoenix barely above its January 2000 pricing level. Washington DC is the only bright spot as home prices rose 2.7% in February over January.

According to the National Association of Realtors, existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 3.7% to a seasonally adjusted annual rate of 5.10 million units in March 2011 from an upwardly revised 4.92 million units in February. Although good news, the numbers are still 6.3% below the 5.44 million unit pace in March 2010.

According to the US Census Bureau and US Department of Housing and Urban Development, sales of new single-family houses in March 2011 were at a seasonally adjusted annual rate of 300,000, up 11.1% above the revised February rate of 270,000, but 21.9% below the March 2010 estimate of 384,000. The median sales price of new houses sold in March 2011 was $213,800, and the average sales price was $246,800. The seasonally adjusted estimate of new houses for sale at the end of March was 183,000, representing a supply of 7.3 months at the current sales rate.

The National Association of Realtors’ Pending Home Sales Index, a forward-looking indicator, rose 2.1% to 90.8, based on contracts signed in February, from 88.9 in January. That is the good news. The bad news is that the index is 8.2% below 98.9 recorded in February 2010, so there is considerable room for recovery. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

According to the US Commerce Department Bureau of Economic Analysis, personal consumption expenditures increased $69.1 billion, or 0.7%, in February 2011 — the largest increase since October 2010 and the eighth straight month of growth — as personal income increased $38.1 billion, or 0.3%, and disposable personal income rose $36.0 billion, or 0.3%. Note that most of the 0.7% increase in spending was the result of higher prices, including higher gas prices. Removing such inflation from the mix would reduce the consumer spending jump from 0.7% to 0.3%

Private wage and salary disbursements increased $16.4 billion in February. Goods-producing industries’ payrolls decreased $1.0 billion. Manufacturing payrolls decreased $1.6 billion. Services-producing industries’ payrolls increased $17.4 billion. Government wage and salary disbursements increased $0.3 billion. Personal saving was $676.7 billion in February, compared with $710.5 billion in January, with personal saving as a percentage of disposable personal income was 5.8% in February, compared with 6.1% in January. In general, with more people working, and saving slightly down, more people were spending.

The National Retail Federation said it expects U.S. retail sales (which excludes online sales, cars, gasoline, and restaurants) will rise 4% in 2011, but warned that reluctance of small businesses to add employees and higher gasoline prices could yet slow consumer spending. NRF noted US retail sales were up 5.7% during the 2010 holiday period, better than the 3.3% increase it had predicted.

For the first time, the number of loyalty memberships in the US broke the 2 billion mark with 2.1 billion, up from 1.8 billion in 2009, according to the Colloquy and Swift Exchange 2011 Forecast of U.S. Consumer Loyalty Program Points Value study. The average household has signed up for 18.4 programs, compared with 14.1 programs in 2009. However, of the $48 billion in consumer loyalty reward points dispensed each year, at least one-third ($16 billion) were never cashed in. The study found the average household earned $622 a year in loyalty benefits, but only used $417 of those rewards.

Not shelling out the rewards may be good in the short term, but it also means missed opportunities to engage and strengthen brand ties in consumers’ minds. The study found that the retail industry, although it makes up 40% of all loyalty program memberships, issued $12 billion a year in rewards, while the financial services sector provided $180 billion a year in rewards.

According to a NY Times article, the cost of insuring the debt of Greece, Portugal, and Spain hit record levels — causing stock markets to tumble, the euro to fall, and borrowing costs in the most vulnerable countries to soar. Analysts note it’s the first big test for the European monetary system and challenges those relatively weak governments to raise taxes and impose harsh spending cuts on a restive populace to bring down their deficits from over 10% of G.D.P. to the benchmark levels close to 3% of G.D.P. called for in the European treaty that created the euro. Failure to do so could send government borrowing costs soaring even higher, making Europe — not the US — the center for macro global risk.

The Energy Department announced that for week ending April 11, 2011, the average price of U.S. gasoline rose to $3.791 a gallon, up from $3.596 per gallon week earlier. Oil rose to about $113 per barrel as continued unrest in the oil producing regions caused unease about the possible short- and long-term effects of both current and potential supply disruptions.

Diesel prices rose to an average $4.078 per gallon, up from last week’s $3.976 per gallon.

Bankrate.com reported that the average conforming 30-year fixed mortgage rate rose to 5.08%, up from last week’s 5.01%, according to its weekly national survey ending April 6, 2011. It also reported that the average conforming 15-year fixed mortgage rate was 4.27%, up from 4.25% last week.

E-book sales are skyrocketing, which is one reason why e-latecomer Borders is sitting in Chapter 11 while e-embracer Barnes & Nobles is not. According to the Association of American Publishers, a coalition of 300 book publishers, total books sales on all platforms, in all categories, hit $805.7 million for January 2011, down 1.9% from $821 million in January 2010. It also noted that January 2011 electronic book net sales increased to $69.9 million (8.67% of total), up 115.8% versus $32.4 million in January 2010 (3.95% of total). Meanwhile, all the myriad print categories were down anywhere from 2% to 31% except two — religious books and professional/scholarly books. Long-term prospects for the e-books look brighter by the year, but one category bears watching: the neither fish-nor-fowl ‘Downloadable Audio Books.’ Those January 2011 sales rose by 8.8% to $6.5 million versus January 2010′s $6.0 million.

The Bureau of Labor Statistics reported the dry numbers that wholesale food prices rose 7.4% in February, while retail prices rose just 2.8%. Even though the grocery stores were eating much of the difference, the rising price of food is leading to sticker shock among consumers, and they are responding with more aggressive coupon use.

According to a Harris Interactive survey, 72% of shopper are using coupons to defray costs and 71% are comparing unit prices of package sizes. About 66% are shopping at discount grocery stores while 64% are stocking up on items when they reach low prices. And in a surprising twist, higher income households are more likely to scrutinize costs: 81% of households in $75,000 to $100,000 bracket are using coupons versus only 63% of households in $35,000 and less bracket.

In the battle of the sexes, the survey found 78% of women use coupons versus 66% of men, 75% of women compare unit prices of package sizes versus 67% of men, and 68% of women stock up at low prices versus 60% of men.

As margins get squeezed, more groceries are relying on retailer discounts provided by manufacturers to help the bottom line, for example, accounting for the equivalent of about 7% of sales at Safeway and 8% of sales at Kroeger, according to the Wall Street Journal. However, manufacturers are also facing margin pressure, and may curtail such incentives or shift them to retailers with the best prospects. Indeed, retailers continued to expand onto grocery stores’ turf with produce, frozen meats, bakery items, and frozen pizza. Target, Walgreens, and CVS are leading the retrofitting because they see it as an opportunity to boost sales by getting people to drop in more frequently.

And it’s working. Packaged Facts reported sales at traditional grocery stores rose 4% over the past five years, while Walmart, Target, and Costco grew at a rate of 10%. Target’s $500 million food investment in 2010 retrofitted 450 of its 1,750 stores with full-blown food sections that yielded 6% higher traffic — and sales — than at similar stores without them. Target noted another 400 conversions are planned for 2011. CVS, with prescription profits squeezed by discount health care plans, added food to lure shoppers inside stores. The 200 redesigned urban stores worked so well, it expects to convert another 1200 stores.

Of course, groceries can always remind brand-name manufacturers that they can increase shelf space devoted to higher margin private label products — a survey from Rabobank’s Food and Agri Research division found that the global market share of private/own label food products will double from the current 25% to 50% by 2025 — to keep the retailer discounts coming and the bottom line humming.

A survey by market research firm Unity of 553 adults with a household income of $75,000 or more found that 4% will spend significantly more on luxury items over last year, 17% plan an increase, 57% will spend about the same, 26% will spend less, and 13% significantly less. Those in the 44-to-54 age group, which is when people typically reach their highest level of earning — already have plenty of stuff and their focus is shifting to spending on experiences, not items. Those in the 35-to-44 age group, which is the most acquisitive time, are more practical and don’t feel they need luxury items. They’re also more casual in their dress and more likely to invest heavily in personal technology, not a flashy watch or jewelry.