US retail sales fell in November by the most in nearly a year, reflecting softness in a range of categories that suggest some easing in Americans’ demand for merchandise.
The value of overall retail purchases dropped 0.6% last month after rising 1.3% in October, Commerce Department data showed Thursday. Excluding gasoline and autos, retail sales were down 0.2%. The figures aren’t adjusted for inflation.
The median estimate in a Bloomberg survey of economists called for a 0.2% decline in total retail sales.
Nine of 13 retail categories fell last month, according to the report, including electronics, furniture and building materials stores. Vehicle sales also declined, due in part to a drop in the prices of used cars and trucks. The value of sales at gasoline stations were down 0.1% as pump prices fell.
Sales at restaurants and bars — the only service-sector category in the report — rose 0.9% in November, the fourth-straight increase.
The report suggests some loss of momentum in consumer demand for goods amid high inflation as well as what’s been a shift in preferences toward services. While rising wages and pandemic-era savings have helped support shoppers, Americans are beginning to feel the squeeze — the saving rate is near a record low and credit-card balances have surged.
The Federal Reserve is looking for a slowdown in consumer spending that will lower economic growth in order to stomp out inflation. Policymakers stepped down the pace of interest-rate increases Wednesday as expected, and while inflation has been decelerating in recent months, they acknowledge that price pressures are still far too high.
November includes some of the biggest shopping days of the year, and retailers offered widespread discounts across a range of products like toys, clothing and electronics on Black Friday and beyond. Separate data from Adobe Analytics found online spending during Cyber Week — Thanksgiving to Cyber Monday — was up 4% from last year.
--With assistance from Jordan Yadoo.
This article was provided by Bloomberg News.