US retail sales beat forecasts with 0.7% rise
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The news: US retail sales rose 0.7% in November, exceeding forecasts, driven by the strongest car sales in over three years amid lower interest rates and year-end discounts.
The context: The data suggest US consumer resilience continues despite inflation pressures.
Spending is being supported by a resilient labour market, marked by low layoffs and solid wage growth, which is helping sustain economic expansion.
Strong household finances, boosted by record stock market gains, high home values and steady savings, are also driving spending.
The numbers: The Commerce Department’s Census Bureau data exceeded forecasts of a 0.5% rise (Reuters) and 0.6% rise (Bloomberg) in retail sales. The bureau revised October’s retail sales increase up to 0.5%.
Auto sales were the strongest in over three years, Bloomberg noted, as discounts and easing interest rates boosted car sales.
Excluding autos and parts, sales rose 0.2%, while core retail sales—which feed into GDP calculations and exclude autos, gasoline, building materials and food services—gained 0.4%, following a drop in October, according to Reuters.
E-commerce sales jumped 1.8%, as Black Friday promotions drove sales in online platforms like Amazon.
Spending at restaurants and bars fell for the first time since March.
The sources: US Census Bureau , Bloomberg , Reuters
