Demand strong for autos, broad range of consumer goods
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — American consumers didn’t go shopping much in October, but they made up for it in November.
Retail spending rose 0.3% last month after declining 0.3% in October, the Commerce Department said Thursday. And sales were much stronger if a big decline in spending at gas stations is factored out.
Sales at gasoline stations fell by 4.0% in November to mark the biggest one-month decline since December 2008. Lower gas prices are a good thing for the economy and for consumers, allowing them to spend more money on other goods and services they desire.
Excluding gasoline, U.S. retail sales climbed 0.8% last month.
Instead of paying more at the pump, consumers spent more money on a variety of goods last month — autos, electronics, appliances, building materials, clothing, sports and leisurely goods, meals and liquor, home furnishings, over-the-counter medicine and personal-care products.
Internet retailers also had their best month in more than a year.
The only categories to see lower sales, aside from gas stations, were general stores and department chains.
Excluding the auto sector, retail sales were flat.
Economists surveyed by MarketWatch had forecast retail sales to rise by 0.4% overall, but fall 0.2% excluding the auto sector.
Consumer spending accounts for as much as 70% of the U.S. economy. Over the past year, spending has risen a modest 3.7%.
Jeffry Bartash is a reporter for MarketWatch in Washington.
