November Retail Sales - Take a Second Look

U.S. retail and food services sales in November were up by just 0.2% over the month. However, if automobiles, gasoline stations and building supply centers are excluded to arrive at core retail sales, the increase last month was a healthier 0.6%.

Sales were even stronger in several of the major retail categories, notably sporting goods, hobby, books and music, and clothing and accessories, both of which posted a gain of 0.8%. Sales at food and beverage stores, general merchandise stores, miscellaneous store retailers, and at restaurants and bars were all up by 0.7%. Electronics and appliance stores and nonstore retailers both saw sales move higher by 0.6% over the month.

Reporting weaker sales were motor vehicle dealers (-0.4%); furniture and home furnishing stores (-0.3%); DIY retailers (-0.3%); and gasoline stations (-0.8%).

On a year-over-year basis, total retail sales in November were up by 1.4%. Most major sectors are reporting year-over-year gains with the exception of electronics and appliance stores (-2.3%) and gasoline stations (-19.9%). The biggest winners over the year have been nonstore retailers (+7.3%), and restaurants and bars (+6.5%).

Overall this was a good retail report. Because retail sales figures are not adjusted for inflation, weak gasoline sales resulting from lower prices tend overshadow strength elsewhere in the retail sector. Remove the effect of lower gasoline prices from the equation and concerns about the health of the U.S. consumer can be laid to rest. (Kimberly Ritter-Martinez)

Source:  http://www.census.gov/retail/marts/www/marts_current.pdf