U.S. retail sales climbed well above expectations in November, reflecting resilient consumer demand led by strong vehicle sales and broad-based gains across discretionary categories.
By yourNEWS Media Newsroom
U.S. retail sales rose sharply in November, signaling continued strength in household spending and reinforcing the role of consumers as a key driver of economic growth.
Overall retail sales increased 0.6 percent for the month, far exceeding forecasts compiled by Econoday, whose surveyed analysts had expected an increase of about 0.2 percent. Individual estimates ranged from a 0.5 percent decline to a 0.4 percent gain, underscoring the extent to which November’s results outperformed expectations.
From January through November, retail sales were up 3.7 percent compared with the same period a year earlier. Over that span, consumer prices rose approximately 2.7 percent, indicating that real, inflation-adjusted retail sales increased by about 1 percent.
Sales at motor vehicle and auto parts dealers posted one of the strongest gains, rising 1 percent in November from the prior month. Compared with a year earlier, auto-related sales were up 4 percent, while vehicle prices increased just 0.6 percent, suggesting a notable rise in unit sales and pointing to higher car-buying activity in 2025 relative to the previous year.
Gasoline prices climbed 3 percent in November before easing in December and January, pushing sales at gas stations up 1.4 percent for the month. Despite the November increase, gas station sales remain down 1.7 percent for the January-through-November period compared with the same months of 2024, while gasoline prices are up 0.9 percent over that timeframe.
Excluding auto dealers and gas stations, retail sales rose 0.4 percent in November. On a year-to-date basis through November, sales in this core category were up 4.4 percent compared with the first 11 months of the prior year.
Spending at restaurants and bars increased 0.6 percent in November, highlighting continued consumer willingness to spend on discretionary services. Year-to-date, sales at eating and drinking establishments are up 5.4 percent, well ahead of the 3.7 percent rise in prices, indicating solid real growth in the sector.
Sales in the so-called “control group,” a subset of retail sales used in calculating Gross Domestic Product, rose 0.4 percent for the month. The gain strengthens the case for robust economic growth in the fourth quarter.
November data showed gains across a wide range of retail categories, including online retailers, hobby and book stores, clothing retailers, and home and garden centers. By contrast, sales declined at furniture stores, fell at department stores, and were flat at general merchandise retailers. Health and beauty stores recorded an increase.
A residual category that includes florists, used merchandise stores, and pet and pet supply retailers posted particularly strong results. Sales in that group jumped 1.7 percent in November and are up 9.1 percent year-to-date, making it one of the fastest-growing segments of retail spending.
Taken together, the November figures point to sustained consumer resilience, with broad-based spending gains continuing to support overall economic momentum late in the year.
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