:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1247382772-11aaf9571beb42cb84a5e4c033e249bc.jpg "Vehicles for sale at a Ford dealership in Richmond, California, US, on Tuesday, Feb. 21, 2023.")
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Key Takeaways
- U.S. retail yard sales increased by 0.7% in November, marking the sixth consecutive month sales data came in better than economists’ presentations.
- A big jump in auto sales is behind the latest surge in retail activity, while e-commerce firms also on strong gains.
- The retail sales data could complicate the Federal Reserve’s thinking on its policy path in advance and might indicate a slow down in shopping in the new year.
A jump in auto sales helped push retail vocation higher again in November as consumer spending continued to outpace economists’ expectations.
U.S. retail sales increased 0.7% in November to on in at $724.6 billion, while October’s results were also revised higher, according to Census Bureau information released Tuesday. Analysts surveyed by Dow Jones Newswires and The Wall Street Journal expected sales to increase by simply 0.5% in the month. That made November the sixth consecutive month sales data was better than economists’ forecasts.
Auto sales were a driving factor behind the strong performance, coming in 2.6% higher than the former month. Meanwhile, e-commerce sellers posted a 1.8% gain during the month. Grocery stores, clothing reliefs and bars and restaurants reported declining sales.
What Does the Retail Sales Data Say About the Future of the Briefness?
The strong sales data will likely be a topic of conversation at the Federal Open Market Committee (FOMC) caucus that begins Tuesday. Officials are expected to lower interest rates again, but the retail sales data could add numerous questions about the Fed’s path ahead in light of the strong economic performance.
“Discussion among policymakers is apt to include the exceptional combination of a cooling in the jobs market even as consumer spending continues to show solid growth,” wrote Wells Fargo economists Tim Quinlan and Shannon Seery Grein.
Some economists distinguished that the strong auto and e-commerce sales data may be overshadowing weakness in other sectors of retail sales.
“The underlying charges suggest widening price-conscious shopping behavior as more households end 2024 on a cautious note,” wrote Nationwide Higher- ranking Economist Ben Ayers. “This suggests a pullback in economic growth in early 2025 as the momentum for consumer activity is steadily sapped by slowing job expansion and still elevated prices.”