Sales by U.S. retailers rose by much more than expected in November, signaling that the household sector remains resilient and consumer spending continues to support rapid economic growth.
Retail spending rose 0.6 percent in November, exceeding even the most optimistic estimates. Analysts surveyed by Econoday expected sales to rise by around 0.2 percent, with estimates ranging from a decline of 0.5 percent to a gain of 0.4 percent.
Since the start of the year through November, sales are up 3.7 percent compared with the first 11 months of the prior year. During that period, consumer prices rose by around 2.7 percent, implying that real sales were up by one percent.
Sales at car and autoparts dealers rose by a striking one percent in November compared with the prior month. They are up four percent from a year ago while prices rose just 0.6 percent, an indication that Americans bought far more cars in 2025 than the prior year.
Gasoline prices surged three percent in November before dropping in December and January. As a result, sales at gas stations rose 1.4 percent. Compared with the January through November period of 2024, however, gas station sales are down 1.7 percent and gasoline prices are up 0.9 percent.
Excluding gas stations and auto dealers, sales rose 0.4 percent at retailers in November. Compared with the first 11 months of 2024, sales through November are up 4.4 percent.
Sales at restaurants and bars rose 0.6 percent in November, indicating a healthy appetite for a largely discretionary category of consumer spending. Year-to-date, spending at eating and drinking places is up 5.4 percent, easily outpacing the 3.7 percent gain in prices.
Sales at the so-called “control group” that is used in the calculation of gross domestic product rose 0.4 percent for the month, strengthening the case for robust growth in the fourth quarter.
Sales were up at online retailers, hobby and book stores, clothing retailers, and home and garden centers. Sales were down at department stores and flat at the broader category of general merchandise retailers. Furniture store sales declined. Sales at health and beauty outlets rose.
Sales at a catch-all residual category that includes florists, used merchandise stores, and pet and pet supply stores rose by a strong 1.7 percent and are up 9.1 percent year-to-date.
