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Retail sales for November grew the most in four months, up 0.2 percent. This modest increase is less than expectations but above October's 0.1 percent figure. However, excluding gas and autos the figure was up a robust 0.6 percent, a definitive reversal of several months of weakness.
Eight of the 13 primary categories in retail improved last month. (Clothing, bars, and restaurants led the way as consumers realized that they didn't have anything to wear and they could use a drink!) Analysts conclude this recent hike in spending is due to a strong labor market that has put millions back to work and a solid increase in holiday shopping.
"Wages are expected to grow in the upcoming months and further strengthen consumer spending. Consumers are the driving force of any economy and this report confirms the role the consumers play in retail sector", says Voya Global Perspective.
