Retail sales in the United States rose by 0.7% month-over-month in November 2024, following an upwardly revised 0.5% increase in October. This growth exceeded market expectations of a 0.5% rise, signaling strong consumer spending during the holiday shopping season. The solid performance reflects continued consumer confidence and a willingness to spend despite ongoing economic uncertainties.

Strong Gains in Motor Vehicles and Nonstore Retailers

The biggest gains in November were seen in sales at motor vehicle and parts dealers, which surged by 2.6%. This was followed by a 1.8% increase in nonstore retailers, a category that includes online shopping. Other sectors also saw positive results, with sporting goods, hobby, musical instrument, and book stores recording a 0.9% rise in sales. Building material and garden equipment supplies dealers saw a 0.4% increase, while furniture and electronics stores experienced modest gains of 0.3%.

Declines in Several Retail Categories

While some sectors thrived, others experienced a slowdown in sales. Health and personal care stores saw flat sales, while miscellaneous store retailers and food services and drinking places both recorded declines of 3.5% and 0.4%, respectively. Other categories, such as food and beverage stores, clothing, and general merchandise stores, also saw slight decreases in sales, ranging from 0.1% to 0.2%.

GDP-Relevant Sales Increase by 0.4%

Excluding categories like food services, auto dealers, building materials stores, and gasoline stations—key components used to calculate GDP—retail sales still saw a healthy increase of 0.4%. This core measure of consumer spending indicates that underlying demand remains strong, providing a positive signal for the broader economy as the year progresses.