US Retail Sales Increase in November Despite Signs of Consumer Caution

Holiday shopping and auto sales drive a 0.7% rise in retail spending, though some sectors experience declines as inflation pressures persist.

Retail sales in the US grew by 0.7% in November, following a revised 0.5% increase in October, according to the Commerce Department.
Auto sales surged by 2.6%, driven by hurricane-related vehicle replacements and dealer incentives to clear inventory.
Online shopping saw a 1.8% boost, with strong performance in categories like sporting goods, books, and hobby items during the holiday season.
Spending declined in key areas such as department stores (-0.6%), grocery stores (-0.2%), and restaurants and bars (-0.4%), reflecting cautious consumer behavior.
Economists note the overall resilience of consumer spending, which remains 4% higher year-over-year, but warn of potential slowdowns heading into 2025.