13 December 2007, 18:11  US Nov retail sales up 1.2 pct

A cheerful start to the holiday shopping season apparently produced much faster retail sales growth last month than economists had expected. The Commerce Department said November retail sales rose 1.2 pct, twice the expected 0.6 pct increase, following an unrevised 0.2 pct September increase. Auto sales were sluggish, providing the principal drag with a 1.0 pct decline. Excluding autos, November retail sales rose 1.8 pct, compared with a 0.7 pct expectation. Forecasters had been looking for the big jump in gasoline pump prices during the month to inflate the headline sales number, and it made a contribution. Gas station sales rose 6.8 pct, but sales excluding both gasoline and autos were still up 1.1 pct for the month. Thanksgiving came early in the month, allowing more than the usual number of early holiday shopping days. Retailers also started their discount programmes early to get customers into the stores. The good sales number for November spread broadly across the various retail categories -- especially in the ones most typically related to gift buying. Clothing store sales rose 2.6 pct, electronics and appliance dealers rose 2.5 pct and sporting goods and music retailers were up 2.2 pct. Non-store, online and catalogue retailers had a 1.9 pct increase for November. Even department stores, which have tended to be weak, showed a 1.0 pct increase. The general merchandise category -- including Target and Wal-Mart -- was comparatively weaker, but 0.9 pct monthly growth can hardly be considered a serious disappointment. Both employment and income were strong enough last month to support consumer spending, but measures of consumer confidence are showing growing pessimism about the future of the US economy.

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