US Retail Sales Beat Estimates on Car Buying, Holiday Sales

Tiger Newspress
01/14

US retail sales rose in November by more than forecast, fueled by a rebound in auto purchases and resilient holiday shopping.

The value of retail purchases, not adjusted for inflation, increased 0.6% after a downwardly revised 0.1% drop in October, Commerce Department data showed Wednesday. Excluding cars, sales climbed 0.5%. The report was delayed by the government shutdown.

Ten out of 13 categories posted increases, including sporting goods and hobby stores as well as building materials retailers and clothing outlets. Motor vehicle sales bounced back after the expiration of federal tax incentives on electric cars restrained sales in the prior month. Higher receipts at gasoline stations also contributed to the overall gain.

The holiday shopping season typically picks up steam in November, with retailers offering promotions and discounts on a range of products not only on Black Friday but also in the days before.

The data suggest consumers took advantage of those deals despite lingering concerns about affordability and their job prospects. While those headwinds are expected to remain top of mind for many middle- and lower-income households in the months ahead, wealthier Americans continue to bolster overall consumption.

The figures may have gotten an extra boost from federal workers, who recouped lost wages from the government shutdown.

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