Retail Sales Rise for Sixth Straight Month

Retail sales rise for sixth straight monthWASHINGTON (AP) - Americans spent more on autos, furniture and clothing at the start of the crucial holiday shopping season, boosting retail sales for a sixth straight month.

Retail sales rose 0.2 percent in November, the Commerce Department said Tuesday. That's lower than October's gain, which was revised higher to show a 0.6 percent increase. Still, more spending on retail goods is the latest sign that the economy continues to grow at a slow but steady pace.

Sales rose at electronics and appliance stores, auto dealers, clothing stores and department stores. But sales fell at building materials stores, gas stations, and grocery stores.

The report is the government's first read on monthly consumer spending, which accounts for 70 percent of economic activity.

A rebound in consumer spending helped revive the economy this summer after it slumped in the spring. Economists expect consumers have helped boost growth even further in the final three months of the year.

Americans spent $52.4 billion over the Thanksgiving holiday weekend, according to the National Retail Federation. The record amount was spurred by deep discounts and early store openings.

Sales for 21 chain stores rose last month, the International Council of Shopping Centers said.

Online holiday sales are also growing, although they are expected to peak this week. Many shoppers tend to complete orders by mid-month to allow time for presents to be shipped.

Merchants can make up to 40 percent of their annual revenue during the holiday shopping season, which includes November and December.

Automakers have also reported strong sales for November. Chrysler, Ford (F), Nissan (NSANY.PK) and Hyundai (HYMTF.PK) reported double-digit sales gains. November is usually a lackluster month for auto sales because of cold weather. But automakers offered steep discounts and many consumers can't wait any longer to replace their aging vehicles.

Auto sales have rebounded from the spring, when the Japan earthquake and tsunami slowed supply chains and limited production at U.S. plants.

Consumers are spending more after cutting back earlier this year in the face of higher food and gas prices. That's a key reason economists forecast that growth should pick up to about 3 percent in the fourth quarter, which would be the fastest pace in 18 months.

More demand has helped boost hiring. Employers added a net total of 120,000 jobs last month. The economy has generated 100,000 or more jobs five months in a row - the first time that has happened since April 2006.

Still, many economists question how long consumers can continue increasing their spending without more jobs and higher pay. Unemployment remains high, and inflation-adjusted incomes shrank in the July-September quarter.

Consumers might also have to cut back on spending if Congress doesn't extend a Social Security tax cut or emergency federal unemployment benefits. Both expire at the end of this year. The Social Security tax this year boosted take-home pay for the average family by $1,000.

Economists also fear that Europe's debt crisis could worsen and plunge the region into a recession. That could slow demand for U.S. exports, tighten lending and make it harder for U.S. businesses to expand.


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TINKDAY

When prices for everything this year are up double digit, retail sales look good on paper, but in reality they are very poor. Just more half truths to make us feel things are getting better, when they are not.

December 14 2011 at 7:03 PM Report abuse +1 rate up rate down Reply
David

And credit card use soars for the sixth straight month. You better wake up people!!!!!

December 14 2011 at 3:14 PM Report abuse +2 rate up rate down Reply
gpfs

Great news for China!

December 14 2011 at 12:59 PM Report abuse +2 rate up rate down Reply
ThinkUp70

Consumers spent more, and with what? Oh, that's right, forgot about those "little plastic cards" that put all in debt.

December 14 2011 at 10:11 AM Report abuse +1 rate up rate down Reply
z4rock

They sold less stuff it just cost more and the Obama sick-o-fents spin it as good news.

December 14 2011 at 8:23 AM Report abuse +3 rate up rate down Reply
jdykbpl45

Lies, damn lies, and government (Obama's minions) statistics,

December 13 2011 at 4:50 PM Report abuse +3 rate up rate down Reply
richw555

Wow...im so excited... yahoo...oh wait Rush is on gotta go get the real news!!!!!!!!!!!!!!

December 13 2011 at 12:17 PM Report abuse +2 rate up rate down Reply
l07hye

Wow the 1% must be shopping and purchasing for everyone. Cause the 99& has nothing to shop with.

December 13 2011 at 11:31 AM Report abuse +4 rate up rate down Reply
hightest2011

Bridge cards ?????????

December 13 2011 at 10:06 AM Report abuse +2 rate up rate down Reply
captmerit

who writes this garbage?

December 13 2011 at 9:57 AM Report abuse +7 rate up rate down Reply