Sales at U.S. retailers rose more than forecast in November, a sign consumer spending is gathering speed heading into 2010.
The 1.3% increase followed a 1.1% gain the prior month that was smaller than previously estimated, Commerce Department figures showed today in Washington. Purchases excluding autos climbed 1.2%, also more than anticipated and the biggest gain since January.
The report indicated that American households, whose spending makes up 70% of the economy, are weathering the worst employment slump since World War II. Retailers including Best Buy Inc. are using discounts to lure holiday shoppers heartened by a slowing pace of job cuts.
Prices of goods imported into the U.S. rose 1.7% in November, the biggest gain in five months, as companies paid more for fuel, a report from the Labor Department also showed today.
Retail sales were projected to rise 0.6% after an originally reported 1.4% gain in October, according to the median estimate of 79 economists in a Bloomberg News survey. Forecasts ranged from a decline of 0.8% to a gain of 1.3%.
Sales rose 1.9% over the past 12 months, the first year-over-year gain since August 2008.
Excluding automobiles, purchases were forecast to increase 0.4%, according to the survey median.
Auto sales are climbing back after plunging in September, the month after the government’s "cash-for-clunkers" plan expired. Purchases at car dealers increased 1.6% after jumping 7.1% in October.
General Motors Co., Toyota Motor Corp., Ford Motor Co. and Chrysler Group LLC all posted November sales that beat analysts’ estimates. The seasonally-adjusted sales rate was 10.9 million vehicles, up from 10.45 million in October, according to industry figures released last week.
Filling station sales increased 6%, the most since June, today’s report showed.
The data aren’t adjusted for inflation so an increase in prices probably helped push up receipts. The average cost of a gallon of the fuel at the pump was $2.65 U.S. last month, up 9 cents U.S. from October, according to figures from AAA, the nation’s biggest motoring organization.
Excluding gasoline and autos, retail sales rose 0.6% last month after a 0.1% October gain, signaling the increase in spending was broad-based.
Electronics, building materials and grocery stores were among the gainers.
Excluding autos, gasoline and building materials -- the retail group the government uses to calculate gross domestic product figures for consumer spending -- sales climbed 0.5% after a 0.3% increase. The government uses data from other sources to calculate the contribution from the three categories excluded.
Signs the deterioration in the labor market is abating may help restore confidence and boost spending. A Labor Department report last week showed the economy lost 11,000 jobs in November, the smallest decline since the start of the recession in December 2007.
Americans are responding to price cuts. Sales on Black Friday and the weekend after the Thanksgiving holiday advanced 0.5% as discounts on electronics and toys drew crowds, according to the National Retail Federation.
Best Buy, the biggest electronics chain, charged $547.99 for 42-inch Samsung flat-panel TVs to lure shoppers. The retailer had bigger early-morning crowds than last year.
TJX Corporation Inc. reported sales up 15% in the four weeks ended Nov. 28 from a year earlier. The operator of T.J. Maxx and other low-priced apparel retailers forecasts strong sales through the end of the year.
Consumer spending will probably climb at a 1.7% annual rate this quarter, more than anticipated in November, according to the median estimate of economists surveyed this month. The world’s largest economy will expand at a 3% pace after growing 2.8% in the third quarter, the survey showed.
