Retail sales in the United States demonstrated a notable increase in November, surpassing initial expectations, as detailed in a report released by the Commerce Department on Tuesday. The main driver of this growth was once again the automobile sector.
According to the report, retail sales rose by 0.7% in November, following a revised increase of 0.5% in October. Economists had anticipated a 0.5% rise, compared to the originally reported 0.4% increase for October.
This larger-than-expected rise in retail sales can be attributed to sustained robust performance in the motor vehicle and parts sector, which surged by 2.6% in November after a 1.8% jump in October.
When excluding the significant impact of auto sales, retail sales experienced a modest growth of 0.2% in November, consistent with the revised figures from the previous month. Excluding car sales, the market had expected a 0.4% rise, compared to the initially reported 0.1% increase from October.
The report also highlighted a 1.8% rise in sales by non-store retailers and a 0.9% increase in sales at sporting goods, hobby, musical instrument, and bookstores. Conversely, sales at miscellaneous store retailers suffered a steep decline, dropping by 3.5% during the month.
Michael Pearce, Deputy Chief US Economist at Oxford Economics, commented, "The above-consensus rise in sales was bolstered by continued strong demand in the auto sector as vehicles damaged by recent hurricanes were replaced. Reconstruction efforts are also providing a boost to building material sales."
He further noted, "The notable strength in November was seen in non-store sales. However, we advise caution in interpreting this data too heavily, as seasonal factors can significantly affect these numbers at this time of year."
Core retail sales, which eliminate the impact of automobiles, gasoline, building materials, and food services, increased by 0.4% in November after experiencing a slight decline of 0.1% in October.
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