US retail sales exceeded expectations in November, rising more than anticipated. This positive trend reflects continued strength in the economy as the year comes to a close, with retail sales up 0.7 per cent following a 0.5 per cent increase in October, according to the US Commerce Department.
Despite the surge in retail spending, market analysts maintain expectations for a potential interest rate cut by the Federal Reserve, marking the third rate cut since September. The central bank’s meeting is focused on navigating signs of steady domestic demand and recent inflation trends, which could influence rate decisions in January.
Retail sales in November also rose by 3.8 per cent year-on-year. The strong performance is driven by resilience in the labour market, characterised by low layoffs and rising wages, which support consumer spending.
Economists note that while retail growth remains strong, uncertainty about the economic impact of President-elect Donald Trump’s policies, including tariffs and immigration reforms, adds complexity to future economic projections.
