US Retail Sales Unexpectedly Rise in November; Weekly unemployment claims drop

U.S. retail sales unexpectedly rose in November as the holiday shopping season began, which should keep the economy on a moderate growth path this quarter.

Retail sales rose 0.3% last month, the Commerce Department reported Thursday. October data was revised downward, showing a 0.2% drop in sales, rather than the 0.1% drop reported previously. Economists consulted by Reuters expect a decline of 0.1% for the month.

Retail sales are primarily goods and are not adjusted for inflation. Spending has cooled from its strong pace at the start of the year amid higher borrowing costs.

The Federal Reserve held interest rates on Wednesday and signaled in new economic projections that the historic monetary policy tightening of the past two years has come to an end and that borrowing costs will be lower in 2024.

Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.4% last month. October data was revised downward, showing stagnation rather than the 0.2% gain reported earlier. This record retail sales more closely matches the consumer spending component of GDP.

Economists expect inflation-adjusted consumer spending to grow at an annualized rate of about 2% this quarter, slower than the 3.6% pace recorded in the third quarter.

A separate Labor Department report on Thursday showed initial jobless claims fell by 19,000 in the week ended Dec. 9 to a seasonally adjusted 202,000. Economists had forecast 220,000 claims for the final week.

Source: Terra

Rose

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