U.S. consumers, battling several economic problems, rebounded strongly in November, pushing retail sales up by the largest amount in four months, the government reported Wednesday. The country's retailers saw sales rise by 1 percent last month, following three consecutive months of weak performance. Sales had fallen in October and September and were flat in August. The November gain, which was the best showing since a 1.4 percent increase in July, came at a critical time at the start of the holiday shopping season, and was ten times higher than the 0.1 percent rise predicted by economists. The 1 percent November increase reflected widespread strength in several areas, led by a 4.6 percent jump at electronics and appliance stores. Sales at car dealerships rose 0.9 percent, and department stores and other general merchandise stores saw sales rise 0.4 percent. Consumer spending, which accounts for two-thirds of U.S. economic activity, slowed dramatically in the spring and summer as Americans were hit with surging gasoline prices, rising interest rates, and a cooling housing market. However, economists believe consumer spending is now stabilizing, reflecting in part the retreat in gasoline prices from the record highs above $3 per gallon (3.8 liters) set in July. In a separate report, the government said the amount of inventories held on shelves and backlots rose by 0.4 percent in October, after a 0.3 percent increase the previous month. The increase in inventories was slightly below the 0.5 percent that economists had expected but followed the pattern of moderate increases as businesses have succeeded in keeping inventories under control even as the overall economy has slowed this year.
