WASHINGTON, Dec 14 (Reuters) – Sales at U.S. retailers rose
more than expected in November as consumers splurged on
clothing and other items at the start of the holiday season and
receipts at gasoline stations surged, more evidence the
economic recovery gathered steam in the fourth quarter.
The Commerce Department said on Tuesday total retail sales
increased 0.8 percent, advancing for a fifth straight month.
Sales for October were revised up to 1.7 percent from a
previously reported 1.2 percent gain.
Economists polled by Reuters had expected retail sales to
increase 0.6 percent last month. Compared to November last year
sales were up 7.7 percent.
Excluding autos, sales rose 1.2 percent last, exceeding
economists’ expectations for a 0.6 percent gain. Sales
excluding autos increased 0.8 percent in October.
The data was the latest to imply an acceleration in
economic growth during the current quarter after output
expanded at a 2.5 percent annual pace in the July-September
period.
However, it will probably not be strong enough to
discourage the Federal Reserve from completing its $600 billion
government debt buying program intended push already low
interest rates further down and stimulate demand.
Policymakers from the U.S. central bank meet on Tuesday to
assess the economy and are widely expected to stay the course
of accommodative monetary policy.
Sales last month were buoyed by a 2.7 percent rise in
receipts at clothing and clothing accessories stores, the
largest increase since March. Consumers also spent on
non-essential goods, lifting sales at sporting goods, hobby,
book and music stores 2.3 percent, the biggest gain in almost a
year.
Sales were also boosted by a 4 percent jump in receipts at
gasoline stations, which was the largest gain in a year. But
motor vehicle sales surprisingly fell 0.8 percent, while
building materials dipped 0.1 percent after rising 3.3 percent
in October.
Core retail sales, which exclude autos, gasoline and
building materials, rose 0.9 percent after a 0.5 percent gain
in October. Core sales correspond most closely with the
consumer spending component of the government’s gross domestic
product report. Spending, which accounts for 70 percent of U.S.
economic activity, increased at a 2.8 percent annual rate in
the third quarter.

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