Overview
- Commerce Department data show a 0.6% month-over-month increase in November sales after October was revised down to a 0.1% decline as agencies catch up from the 43-day shutdown.
- Core retail sales used in GDP calculations rose 0.4% in November, and the figures are not adjusted for inflation.
- Motor vehicles and parts dealers posted a 1.0% gain, with category gains also at clothing stores (+0.9%), nonstore retailers (+0.4%), sporting goods and hobby stores (+1.9%), and restaurants and bars (+0.6%).
- Bank of America reported a persistent gap between higher- and lower-income spending growth, with discretionary categories showing the sharpest divergence.
- Stronger retail data support firmer fourth-quarter growth tracking, including the Atlanta Fed’s roughly 5.1% nowcast, and reduce market odds of further near-term Fed rate cuts.