Black Friday, Auto Discounts Boost US Retail Sales 0.7%
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U.S. retail sales increased at a firm pace in November, bolstered by a surge in car purchases that masked more mixed spending elsewhere.
The value of retail purchases, not adjusted for inflation, increased 0.7% after upward revisions to the prior two months, Commerce Department data showed Dec. 17. Excluding autos, sales climbed 0.2% for a second month.
| Metric | Actual | Estimate |
|---|---|---|
| Retail sales (m/m) | +0.7% | +0.6% |
| Sales ex. autos (m/m) | +0.2% | +0.4% |
| 'Control group' sales (m/m) | +0.4% | +0.4% |
Seven of the report’s 13 categories posted increases. Auto sales in November, as tracked by Ward’s Automotive Group, were the strongest in over three years as interest rates came down and dealerships deployed deep year-end discounts.
E-commerce sales jumped 1.8%, as Black Friday and Cyber Monday promotions generated massive sales on platforms like Amazon.com Inc. and TikTok Shop. Receipts at building material stores rose 0.4%.
The data suggest consumers remained resilient during the crucial holiday shopping season, lured by discounts and bolstered by incomes that have been rising faster than prices. Measures of confidence have also been climbing since the November election, and some consumers have reported they could avoid higher prices from possible new tariffs imposed by the Trump administration by purchasing big-ticket items now.
The retail sales report comes at the start of the Federal Reserve’s two-day policy meeting, which is expected to culminate in another interest-rate cut on Wednesday. Policymakers point to a general easing in inflation and a somewhat-softer labor market as reasons to lower borrowing costs, though several have called for a more gradual approach to rate reductions going forward given the underlying strength of the economy.
(Bloomberg)
So-called control-group sales — which feed into the government’s calculation of goods spending for gross domestic product — increased 0.4% in November following a drop in October. The measure excludes food services, auto dealers, building material stores and gasoline stations.
Over the past three months, control-group sales increased an annualized 5.6%, boding well for fourth-quarter GDP.
The retail sales figures aren’t adjusted for inflation and largely reflect purchases of goods, which comprise a relatively narrow share of overall consumer outlays. Personal consumption expenditures data due Dec. 20 will provide more details on inflation-adjusted spending on goods and services in November.
Spending at restaurants and bars, the only service-sector category in the retail report, fell for the first time since March.
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