WASHINGTON - November retail sales rose 0.8% versus the 0.3% gain expected and up 1.0% ex-motor vehicles compared to the 0.7% gain expected, as motor vehicle sales fell 0.2%. October sales were revised up to show a 0.5% gain and a 0.4% gain ex-motor vehicles, the Commerce Department reported Thursday.
The November retail sales data were well above expectations, in line with the tendency to underestimate sales in November. Combined with upward revisions in the previous two months, the data suggest that consumption was stronger in fourth quarter.
November sales rose 0.8% ex-motor vehicles and gas and rose 0.8% ex-auto, building materials, gas and food services, suggesting significant underlying strength.
Gas station sales rose 2.8% (sales ex-gas up 0.6%) and building materials up 1.2% after a 0.1% dip in October and a 3.1% gain in September due to the hurricanes. Food services rose 0.7% and all other categories were higher.
November total sales rose 9.5% vs 3Q average at an annual rate and were up 8.0% ex-motor vehicles and up 5.5% ex-autos, building materials, gas, and food services, suggesting a very good start for fourth quarter PCE.
