Unexpectedly, retail sales in the United States showed a 0.3% increase in November, signaling a strong start to the holiday shopping season. This rise, coupled with deep discounts, is likely to contribute to steady economic growth in the current quarter, easing concerns about a potential recession.
Data from the Commerce Department revealed the uptick in the value of retail purchases, excluding adjustments for inflation. The figures for the previous month were revised downward. When petrol is excluded from the calculation, retail sales experienced a more notable increase of 0.6%.
In a separate report released on Thursday, it was noted that applications for unemployment benefits in the U.S. dropped by 19,000 in the past week, reaching 202,000. This marks the lowest level since October and is close to historic lows, indicating a positive trend in the job market.
An earlier survey released this week revealed a consistent reduction in the prices of goods, including clothing and furniture, for the sixth consecutive month, excluding food and energy. This implies that the unexpected strength in retail sales might be reflecting higher levels of consumer activity.
The Federal Reserve, in its recent decision, opted to keep interest rates at a 22-year high. Additionally, new projections revealed a significant upward revision of economic growth estimates for this year, as seen in the September meeting. While policymakers anticipate a slowdown in the economy, they also foresee several rate reductions, aiming to stimulate consumption and job creation.
