US November Retail Sales Up 0.3% MoM... Black Friday Effect Exceeds Expectations

Last month, U.S. retail sales exceeded expectations, boosted by the Black Friday effect.

According to the U.S. Department of Commerce on the 14th (local time), November retail sales amounted to $705.7 billion, an increase of 0.3% compared to the previous month. Contrary to the expert forecast compiled by The Wall Street Journal (WSJ), which expected a 0.1% decrease, the figures showed strength. This also marked an improvement from the previous month’s revised decline of -0.2%.

Contrary to initial expectations that consumer spending would slow down significantly starting in the fourth quarter due to accumulated tightening and depletion of additional savings, consumer spending continued during the holiday discount period including Black Friday, resulting in a rebound. Andrew Hunter of Capital Economics stated, "The rebound in November retail sales shows that the sharp slowdown in inflation does not necessarily lead to an economic growth slowdown."

[Image source=AP Yonhap News]

Specifically, while gasoline sales revenue fell by 2.9% due to lower oil prices, sales of household goods, automobiles, clothing, and accessories increased. Sales at bars and restaurants rose by 1.6%, and sales at sporting goods, book, and music stores increased by 1.3%.

This retail spending report attracted attention as it was released shortly after the Federal Reserve (Fed) acknowledged sufficient progress in the fight against inflation and hinted at the possibility of three interest rate cuts next year.

The unemployment data released on the same day showed a slowing trend. According to the Department of Labor, new unemployment claims for the week of December 3?9 decreased by 19,000 from the previous week to 202,000. This figure was slightly below the expert forecast of 222,000. However, continuing claims for unemployment benefits, which are filed by those claiming benefits for at least two weeks, increased by 24,000 from the previous week to 1,876,000.

This content was produced with the assistance of AI translation services.