Retail sales in the US edged up 0.3 per cent month over month in November following a 0.2 per cent decline in October, according to the Commerce Department’s Census Bureau.
The increase was considered unexpected amid market forecasts of another fall, reflecting a strong start to the holiday shopping season.
Excluding motor vehicles, parts and gasoline stations, retail sales rose 0.6 per cent.
Food services and drinking places recorded the biggest growth of 1.6 per cent, followed by non-store retailers (1 per cent), health and personal care (0.9 per cent) and furniture stores (0.9 per cent).
Meanwhile, sales at gasoline stations dropped 2.9 per cent as gas prices declined. Sales at electronics and appliance outlets also slipped 1.1 per cent, likely the result of discounting.
Year on year, retail sales went up 4.1 per cent – the strongest annual growth since February – versus October’s gain of 2.2 per cent.
Reuters said November’s increase likely keeps the economy on a moderate growth path this quarter and further alleviates fears of a recession.
The fourth-quarter consumer spending is expected to grow by as much as a 2.75 per cent annualized rate, up from earlier estimates of around 2.0 per cent.
