Retail sales rise slightly for 6th month in a row
— -- Shoppers snapped up a wide range of items in November — from holiday stocking stuffers to sports cars — helping to boost retail and food service sales for the sixth consecutive month.
November sales rose 0.02%, the Commerce Department said Tuesday. That's lower than October's 0.06% gain and didn't meet economist expectations. But the upward swing did show that consumers are spending on an array of items, such as clothing, TVs, home goods and cars.
"Retail sales didn't come in as strong as we expected," says Chris Christopher, senior principal economist at IHS Global Insight. "But when you dig deeper into the data, holiday spending on electronics, sporting goods and general merchandise was above water and did relatively well."
Several factors helped elevate November sales, among them:
Holiday-related deals. Discounts offered on Black Friday and Cyber Monday encouraged consumer spending, says National Retail Federation CEO Matthew Shay. November retail industry sales excluding autos, gas stations and restaurants rose 0.09% from October and increased 4.5% over November 2010, says the NRF.
Increased convenience. Consumers embraced the time-saving option of making purchases via smartphones, tablets and laptops, Shay says. Technological advances let shoppers buy "at any time and at any place."
Reduced prices at the pump. As gas prices have gone down, discretionary funds have gone up. That fuel price decline "gives people some extra money to spend," says Christopher.
More cars to choose from. Supply constraints because of the tsunami in Japan and floods in Thailand have eased, says Christopher. Increased selection and automaker promotions helped bolster sales.
Even though November sales were positive overall, some worrisome issues remain, retail experts say.
Consumer confidence may be rising, but it's still depressed , says Christopher. And a recent Thompson Reuters/University of Michigan survey shows that household finances continue to weaken.
Europe's debt crisis and stock market gyrations affect the consumer's psyche — and spending, says Shay. Yet he is cautiously optimistic. "We see signs of life," he says. "We're not going to see lightning strike, but we should feel some sense of confidence."
