U.S. retail sales rose solidly last month as consumers purchased automobiles, furniture, and a range of other goods, the government reported Thursday, signaling growing confidence in the economy during the year-end holiday shopping season. The Commerce Department said retail sales rose 0.7 percent in November, the biggest gain in five months. Sales rose 0.6 percent in October. Two consecutive months of healthy sales suggests that steady hiring is encouraging Americans to spend more this holiday season, particularly on expensive items. Auto sales jumped 1.8 percent, and furniture purchases rose 1.2 percent, more than offsetting a 1.1 percent drop in sales at gasoline stations. Core retail sales—which exclude automobiles, food, gasoline, and construction materials and correspond most closely with the consumer spending component of gross domestic product (GDP)—rose 0.5 percent in November after advancing 0.7 percent the previous month. Americans also are shifting more spending to online and catalog retailers, where sales rose 2.2 percent in November, the most in 18 months. The report indicated that consumer spending—which accounts for 70 percent of U.S. economic activity—likely would rise from a two-year low hit in the third quarter. Spending is being supported by solid employment gains and steady income increases. Lower gasoline prices also are helping, though they hurt the retail-sales figure.
