Retail sales rose more than expected in November, fueled by auto, online
The holiday selling season got off to a good start in November despite the fact that two busy shopping days fell in December due a late Thanksgiving this year.
Overall retail sales in November rose 0.7% month-over-month, ahead of the 0.6% increase analysts had expected, and were up 3.8% year-over-year, according the U.S. Census Bureau. The increase were boosted by strong sales at auto dealers, up 2.7%, and online, up 1.8%.
In other results, sales at sporting goods, hobby, musical instrument and book stores increased 0.9%, and sales at building material and garden equipment store sales rose 0.4%. But sales at clothing stores fell 0.2% as did sales at grocery stores. Sales at food services and drinking places fell 0.4%.
Core retail sales — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — increased 0.4% month over month and were up 3.8% unadjusted year-over-year.
“November’s results show a strong start to the traditional holiday season,” said National Retail Federation chief economist Jack Kleinhenz. “These numbers combined with better-than-expected October sales are evidence that consumer spending continues to fuel the economy. Job and wage gains, modest inflation and a heathy balance sheet have led to solid holiday spending.
Kleinhenz noted that the growth came even though the late timing of Thanksgiving delayed the beginning of the busiest shopping portion of the holiday season and pushed the Sunday of Thanksgiving weekend and Cyber Monday sales into December.
November’s results align with NRF’s forecast that holiday sales will grow 2.5% to 3.5% over 2023. (NRF defines the season as Nov. 1 through Dec. 31.)
“The season’s pace of spending is clearly on track to reach our forecast,” said Kleinhenz.
Core sales were up 3.5% year-over-year for the first 11 months of the year, in line with NRF’s forecast that sales for the full year will also grow between 2.5% and 3.5% over 2023.
