US retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start amid deep discounting, likely keeping the economy on a moderate growth path this quarter and further alleviating fears of a recession.
Commerce Department figures released, indicated a 0.3 per cent increase in the value of retail purchases, unadjusted for inflation. The previous month’s figures were revised downward. With petrol excluded, sales increased by 0.6 per cent.
Applications for US unemployment benefits fell 19,000 last week to 202,000, the lowest level since October and almost historic lows, according to a separate survey released on Thursday.
According to a survey released earlier this week, November saw a reduction in goods prices—including those for clothing and furniture—for the sixth consecutive month, except food and energy. This suggests that higher levels of purchasing activity were reflected in the data’ surprise strength.
This week, the Federal Reserve agreed to maintain interest rates at a 22-year high. Additionally, new projections indicated that the September meeting’s economic growth estimates had been significantly revised upward for this year. Although policymakers anticipate a slowdown in the economy, they also see a number of rate reductions, which should boost consumption and jobs.
