U.S. retail sales rise in November, exceeding forecasts

U.S. retail sales rose 0.6% in November after a revised October decline, helped by a rebound in motor vehicle purchases; core retail sales, excluding autos, gasoline, building materials and food services, rose 0.4%.

U.S. retail sales climbed 0.6% in November, the Commerce Department's Census Bureau reported, following a downward revision to October's result. Motor vehicle purchases rebounded and spending increased across other categories. The report arrives as the Census Bureau continues to catch up after delays tied to a 43-day government shutdown. Observers note that spending gains have been concentrated among higher-income households. Key facts: - Overall retail sales rose 0.6% in November, above economists' median forecast of 0.4%. - Retail sales were revised to show a 0.1% decline in October rather than no change. - Core retail sales, which exclude automobiles, gasoline, building materials and food services, increased 0.4% in November after a revised 0.6% gain in October. - Bank of America Securities' Consumer Prism reported a substantial and persistent gap in spending growth between higher- and lower-income households through the fourth quarter. - The government said food prices rose by the most in over three years in December, while the Atlanta Federal Reserve is forecasting a 5.1% annualized GDP increase for the fourth quarter. Summary: The November gain supports the view that consumer spending remained a driver of economic growth late in the year. Economists and statistical agencies are expected to incorporate the updated retail figures into fourth-quarter GDP estimates and related reporting.