US retail sales unexpectedly rebound in November; weekly jobless claims fall
WASHINGTON (Reuters) — U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, which should keep the economy on a moderate growth path this quarter.
Retail sales rebounded 0.3% last month, the Commerce Department's Census Bureau said on Thursday. Data for October was revised lower to show sales falling 0.2% instead of dipping 0.1% as previously reported. Economists polled by Reuters had forecast retail sales edging down 0.1%.
Retail sales are mostly goods and are not adjusted for inflation. Spending has cooled from a robust pace earlier this year amid higher borrowing costs.
The Federal Reserve held interest rates steady on Wednesday and signaled in new economic projections that the historic tightening of monetary policy engineered over the last two years is at an end and lower borrowing costs are coming in 2024.
Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.4% last month. Data for October was revised lower to show these so-called core retail sales gaining unchanged instead of the previously reported 0.2% gain. Core retail sales correspond most closely with the consumer spending component of GDP.
Economists expect inflation-adjusted consumer spending to grow at about a 2% annualized rate this quarter, slower than the 3.6% pace notched in the third quarter.
The Atlanta Fed is forecasting GDP to rise at a 1.2% rate in the fourth quarter, below what Fed officials regard as the non-inflationary growth rate of around 1.8%. October-December growth is also seen restrained by a wider trade deficit and slower inventory accumulation.
The economy accelerated at a 5.2% rate in the July-September quarter. Though growth is cooling,
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