US retail sales rose 0.2% in Nov., helped by holiday boost
WASHINGTON — U.S. retail sales increased a slight 0.2% in November, as strong sales tied to holiday shopping were offset by lower gasoline prices.
The Commerce Department said Friday that retail sales have climbed a solid 5.3% so far this year. In November, non-store retail sales — a category that includes Internet brands such as Amazon — jumped 2.3%. Furnishers, electronics stores and health stores also enjoyed a solid bump as the holiday shopping season got into full swing last month.
“U.S. consumers were feeling festive a month before the holidays!” said Jennifer Lee, a senior economist at BMO Capital Markets.
Americans have responded to an improvement in economic growth this year by spending more, especially online and at restaurants. Retail sales are an indicator that Americans have faith that the economy with a half-century low unemployment rate of 3.7 per cent will continue to grow. Yet the economic gains of the past year — buoyed by President Donald Trump’s deficit-financed tax cuts — have not insulated retailers from broader long-term pressures. Department stores have seen their sales slip year-to-date, while sales gains for automakers this year have been weak as companies such as General Motors are announcing layoffs for thousands of workers.