November retail sales rose 0.2%

Bonds

November retail sales were up 0.2% in the month, slightly above analysts’ projections for a 0.1% gain, but well below the 0.9% gain expected by markets, according to a report released by the Commerce Department Friday.

The modest headline gain hides significant underlying strength when a large gasoline station drop is removed. October sales were revised up to a 1.1% gain.

Excluding a 0.2% gain in motor vehicle sales, retail sales were still up 0.2% in November, compared with the 0.1% gain expected and following an upward revision to October.

November sales were up 0.5% ex. motor vehicle and gas, only slightly behind the 0.7% October gain, and were up 0.9% for the “control” group (ex auto, building materials, gas and food services), stronger than the 0.7% rise in October. The data suggest that the underlying current of sales remained strong in November.

You Might Like

Gas station sales fell 2.3% in the month (retail sales ex. gas +0.5%), while building materials sales were down 0.3% and food services sales were down 0.5%.

There were gains in every other component except for clothing, with a sharp 2.3% rise in sales at non-store retailer, suggesting a strong Black Friday performance.

Building materials sales are likely to rise sharply in the coming months as rebuilding efforts in the hurricane-impacted areas increase.

Fourth quarter sales were up 4.3% vs the third quarter average, based on an MNI calculation. Sales were up 3.9% ex motor vehicles, and up 4.6% ex autos, building materials, gas, and food services.

The data suggest that PCE growth remained strong to end the year.

Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.

Articles You May Like

What’s gold price outlook as markets shift from inflation to recession fears?
The Return of the Anguish of Central Banking: Why the Fed and Inflation Go Hand in Hand
Politics class: New bill of rights would allow UK courts to diverge from ECHR rulings
Covid infections rise 20% in England as new Omicron variants spread
$6.5 Million Mountain Retreat Is Rare Inventory For Booming South Lake Tahoe Town

Leave a Reply

Your email address will not be published.