Retail sales surge on strong auto and internet sales
Retail sales rose faster than expected at the start of the holiday shopping season in November, pointing to steady growth in the U.S. economy.
Sales at U.S. retailers rose 0.7% last month, the government said Tuesday.
Retail sales account for about a third of all consumer spending and provide clues to the strength of the economy. What they do show is that the U.S. is ending 2024 on a strong note.
Economists surveyed by the Wall Street Journal had forecast a 0.5% gain last month.
Key details: Sales of new cars and trucks jumped 2.6% in November to lead the retail gain. Auto sales account for a fifth of all retail sales.
Excluding autos, retail sales rose a more modest 0.2%.
Restaurant sales, a leading economic indicator, fell 0.4% for the month. Restaurant sales tend to rise when the economy is healthy and Americans feel secure in their jobs. Sales typically decline during times of stress.
However, restaurant sales rose 2% over the past year.
Sales at internet retailers, another category to watch, rose 1.8% last month.
The big picture: Americans are spending big, and that’s helping fuel very strong economic growth.
Low unemployment, rising incomes and a record stock market have given consumers the confidence to keep spending.
The result: The U.S. enters 2025 with strong momentum.
Market reaction: The Dow Jones Industrial Average DJIA and the S&P 500 SPX are expected to open lower in Tuesday’s trading.
Source: Bloomberg
