Retails sales rise in November as shopping picks up

Overall, retail sales edged up 0.1 per cent, having been weighed down by falling automobile sales and cheaper gasoline.

USA retail sales showed a bit more strength in November, Commerce Department data (http://www.census.gov/retail/index.html) released Friday revealed, pointing to a continued moderate pace of economic growth in coming months. Department stores reported flat sales.

The figures used to calculate gross domestic product, which exclude categories such as food services, auto dealers, home- improvement stores and service stations, increased 0.6 percent in November after rising 0.2 percent.

Still, it’s unclear whether cheaper gas has fueled more consumer confidence.

Excluding the 0.8% fall in sales at gasoline station in November, sales rose 0.3%.

Analysts had forecast a gain of 0.3%.

In comparison with the previous month, sales of motor vehicles dropped 0.4%, those of furniture by 0.3% and those of building materials by another 0.3%. More people are also spending money at restaurants and buying autos, but shopping at department stores has increased a mere 0.5 percent over the past 12 months as tastes in shopping have adapted to a digital era. Yet retail sales account for only about one-third of spending, with services such as haircuts and Internet access making up the other two-thirds. The 0.4 percent decrease, after a 0.3 percent decline, is at odds with industry data from Ward’s Automotive Group showed sales of cars and light trucks in November exceeded an 18 million annualized rate for a record third straight month.

Chad Moutray is the chief economist, National Association of Manufacturers. Sales at electronics and appliance outlets advanced 0.6 percent.

The moderation came despite a tightening labour market, which has started to lift household income.

But Americans have been reluctant to let loose in the second half of the year, preferring instead to stash their extra income. Firms that supplied equipment to mining and oil drilling companies have been extra-hard hit by low commodity and energy prices, and thousands of jobs have been cut in the mining and energy sectors. That may be related to wage growth that has yet to pick up significantly.