Retail sales in November rose by 0.7%, a positive indication for the economy during the early winter Christmas shopping season.
The increase was higher than the previous month’s gain of 0.5%, with auto dealers contributing significantly to the rise with a 2.6% jump in sales.
The big picture: The boost in spending reflects ongoing economic growth despite higher interest rates, suggesting a potential adjustment in Federal Reserve’s future rate decisions.
- While overall sales improved, there were declines noted in sales at grocery stores, clothing shops, and restaurants, highlighting some consumer caution.
Flashback: The economy had expanded at nearly a 3% annual pace in the previous quarter, with expectations of steady growth in the final quarter of the year.
- The holiday shopping season started well, with successful online sales during the cyber week and Black Friday, indicating a positive trend in consumer spending.
