Retail Sales Rose in November as Holiday Shopping Began

As overall sales rose, spending — the key drivers of U.S. economic activity — at grocery stores and liquor stores, gas stations, clothing retailers and home improvement stores increased. Sales declined in several categories however: Spending at electronics and appliances stores fell 4.6 percent last month, while sales at car dealers and general merchandise stores, such as department stores, were down as well. Health and personal care stores, such as pharmacies, also saw a decrease of 0.6 percent.

Ms. Gramling said retailers were likely to face logistical issues in January, when consumers come back to stores with returns from the holiday season.

The latest measure of sales — the key driver of economic activity in the United States — comes as consumers are grappling with high inflation and a predicted surge in coronavirus infections. The sales data for November does not reflect how shoppers might have reacted to the emergence of the Omicron variant, which started to make headlines during the Thanksgiving weekend.

But for now, economists expect that sales will continue to rise in December.

A reading on consumer sentiment, measured by a University of Michigan survey on how Americans view the general state of the economy, increased in December after falling to its lowest level in a decade in early November. Those surveyed pointed to inflation as the most serious problem the country faces, according to preliminary results published on Friday.

Also on Friday, the Labor Department reported that consumer prices had risen at their fastest pace in nearly 40 years. The Consumer Price Index was up 6.8 percent last month compared with a year earlier as demand for products remained strong and the virus continued to disrupt manufacturing and transportation.

Article source: https://www.nytimes.com/2021/12/15/business/economy/november-2021-retail-sales.html