U.S. retail sales rose 0.7% in November, the sharpest increase since June, as per data from the Commerce Department.
Retail sales rose a seasonally adjusted 0.7% in November from 0.6% in October, with the prior month’s gain being revised up to 0.6% from 0.4%.
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The surge in sales is attributed to stepped-up spending on a wide range of goods from automobiles to electronics.
Core sales, excluding automobiles, food services, gasoline and building materials, rose 0.5% after gaining 0.7% in October.
This core sales gain was also consistent with consumer spending, rising at an annualized rate of at least 3.5% in the fourth quarter, reports Reuters.
Providing a strong start to the crucial Holiday Shopping Season, the data shows that consumers are shifting to big-ticket items like cars or home repairs, and not spending much on items such as clothing.
Home improvement chains Home Depot and Lowe’s Inc. last quarter reported better sales gains than chains such as Macy’s Inc or Target Corp.
Inventories have also increased 0.7% in October, the largest gain in nine months, after 0.6% rise in September.
