U.S. retail spending rose more than expected in November, bouncing back from a decline in the previous month and pointing to continued resilience in consumer demand as the year drew to a close.
Retail sales increased 0.6% from October, outpacing market forecasts for a 0.5% rise, according to data released Wednesday by the U.S. Census Bureau. The October reading was revised to show a 0.1% month-on-month contraction. The figures largely reflect goods purchases and are not adjusted for inflation.
Gains at gasoline stations and higher spending on categories such as sporting goods and hobby-related items helped offset weaker sales of furniture and softer demand at department stores.
Household consumption remains a key driver of the U.S. economy, typically accounting for around two-thirds of overall economic activity.
Economists continue to debate how elevated living costs are influencing consumer behaviour, particularly among lower- and middle-income households facing persistent inflation and a cooling labour market. Some analysts have characterised the economy as “K-shaped,” with higher-income consumers and large corporations responsible for a disproportionate share of spending.
Core retail sales — which exclude volatile categories such as autos, fuel, building materials and food services and are considered more closely tied to the consumer spending component of GDP — rose 0.4% in November. That marked a slowdown from a revised 0.6% increase in October, which was previously reported as a 0.8% gain.