US November Retail Sales Rise 0.7% in a Month... Consumer Sentiment Remains Strong

Boosted by Increased Car Sales After Interest Rate Cuts

Strong Consumer Sentiment Due to Low Layoffs and Income Growth

U.S. retail sales in November rose by an annual 3.8%, higher than expected, driven by a surge in car purchases.

On the 17th (local time), the U.S. Department of Commerce announced that November retail sales increased by 0.7%p compared to October. Economists had expected a 0.5%p increase. Retail sales excluding cars rose by 0.2%.

Retail sales increased in seven out of the 13 categories surveyed. November car sales tracked by Ward's Automotive Group saw the largest increase in three years, thanks to falling interest rates and dealer promotions.

E-commerce sales rose by 1.8% as Black Friday sales increased. The strong retail sales occurred despite Cyber Monday being postponed to December this year.

American consumers maintained their spending resilience, supported by low layoffs and rapidly rising incomes. Some consumers are believed to have accelerated their purchases of high-priced items like electronics, anticipating potential price hikes if the Trump Administration imposes additional tariffs next year.

Retail sales figures mainly reflect goods purchases, which account for a relatively small portion of total consumer spending. The Personal Consumption Expenditures (PCE) data, to be released this Friday, will report inflation-adjusted spending on goods and services for November.

Kim Jung-a, Guest Reporter kja@hankyung.com