Sales at U.S. retailers rose 0.7% last month, the government said Tuesday. Sales in October were also a bit strong than originally reported.
Retail sales represent about one-third of all consumer spending and offer clues on the strength of the economy. What they show is that the U.S. is finishing 2024 on a fairly positive note.
Rising automobile sales are typically a sign of strength in the economy because such sales represent a large financial commitment for buyers. But the surge in sales stemmed from dealerships ratcheting up incentives to move vehicles piling up on their lots.
Auto sales account for one-fifth of all retail sales. If automobiles were omitted, retail sales rose a more modest 0.2% last month.
Sales at Internet retailers, another critical category, rose a robust 1.8% last month.
More negatively, restaurant sales fell 0.4% in the month. Restaurant sales tend to rise when the economy is healthy and Americans feel secure in their jobs. They typically decline in periods of stress.
Restaurant sales are up a decent 2% in the past year, however.