2023-12-14 13:45:20
US retail sales unexpectedly increased in November. The drop in gasoline prices appears to have boosted consumption during the holiday shopping season.
Key Point
- US retail sales increased 0.3% month on month
- Market expectation is 0.1% decrease
- The previous month was revised downward to 0.2% decrease (preliminary figure 0.1% decrease)
- Data is not adjusted for inflation
Retail sales excluding automobiles and gasoline increased by 0.6%.
Bar graph: US retail sales, line graph: Core sales (both month-on-month)
Source: US Department of Commerce
Consumer spending has held up better than expected given the headwinds of persistent inflation and rising borrowing costs. Consumer purchasing power was supported by a surprisingly strong labor market, which also benefited from lower gasoline prices.
Alex Pelle, Mizuho’s US economist, said the data released this morning was “stronger than expected across the board.” “While the U.S. economy weakened in October, it was clearly strong in November,” he said.
In breakdown, 8 out of 13 items increased. This was driven by restaurants, sporting goods stores, and online retailers. Restaurants are the only service category included in retail sales statistics. Gasoline prices continued to fall, and sales decreased by nearly 3%. Department stores experienced the sharpest decline since March. This reflects sluggish sales on Black Friday, the day following Thanksgiving, when the holiday shopping season is in full swing.
Core sales, which exclude restaurants, car dealers, building materials stores and gas stations, which are used to calculate gross domestic product (GDP), rose 0.4%. The previous month’s forecast was revised downward to remain flat.
See table for detailed statistics.
Original title:US Retail Sales Unexpectedly Rise in Solid Start to Holidays(excerpt)
(Updated with comment from The Economist)
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