Auto Sales Drive Unexpected Boost in Consumer Spending in November | Global News Avenue

A surge in auto sales helped push retail activity higher again in November as consumer spending continued to exceed economists’ expectations.

U.S. retail sales Income increased 0.7% to $724.6 billion in November, according to Census Bureau data released Tuesday, while October’s results were also revised upward. Analysts surveyed Dow Jones Newswires and wall street journal Sales are expected to rise just 0.5% this month. That made November sales figures better than economists’ forecasts for the sixth straight month.

Auto sales rose 2.6% from the previous month, a driving factor behind the strong performance. Meanwhile, e-commerce sellers grew 1.8% this month. Grocery stores, clothing stores, bars and restaurants all saw sales decline.

What impact does retail sales data have on the future of the economy?

Strong sales figures could be a conversation topics exist Federal Open Market Committee (FOMC) The meeting begins on Tuesday. Officials are expected to Lower interest rates againBut given the strong economic performance, the retail sales data may raise more questions about the Fed’s path forward.

“Discussions among policymakers can easily include a strange combination of: Job market cooling Even as consumer spending continues to show solid growth,” Wells Fargo economists Tim Quinlan and Shannon Seery Grein wrote.

Some economists noted that strong auto and e-commerce sales data could mask weakness in other retail sectors.

“Underlying details suggest price-sensitive shopping behavior is expanding as more households end 2024 cautiously,” Nationwide senior economist Ben Ayers wrote. “This points to a pullback in economic growth in early 2025 as job growth slows and prices remain elevated, with consumer activity losing momentum.”