Retail sales growth in the United States stood at 2% month on month in November against 0.1% in previous month. At a disaggregate level, core retail sales posted a robust growth of 0.6% month on month, whereas, ex-autos sales increased by 0.4% during the same period. These two sectors lead the overall retail sales growth in November. On the other hand, nominal motor vehicle sales and stations sales declined by 0.4% and 0.8% month on month for the same period.
Since the labor market is performing well, the improvement in employment and household income is expected to underpin the private consumption growth of the economy in near future.
"Stronger-than-expected core retail sales in November boosted our tracking estimate of Q4 real consumption growth one-tenth, to 2.5%. This, in turn, boosted our Q4 GDP tracking estimate one-tenth, to 1.8%", says Barclays in a research note.
