November retail sales beat expectations, rising 0.7 percent

Dec. 12 (UPI) -- Retail sales saw a November spike of 0.7 percent mostly led by purchases of big ticket items such as automobiles and furniture.

This is the strongest spike since June, and compares with economist expectations of a 0.6 percent increase. It signals a stronger holiday season for sales and strengthening consumer confidence, which is significant for retailers who make close to 40 percent of their yearly sales during the holiday season, according to the National Retail Federation.

Sales were led by autos, which rose to a six-year high. Consumers also bought more electronics, furniture and building materials. But sales at clothing and food stores were lower, and so were sales at gas stations where prices at the pump were lower.

The news comes as economic conditions pick up overall. The unemployment rate dipped to a five-year low of 7.0 percent from 7.3 percent, and 200,000 more jobs were added in November. Business leaders have also shown optimism in hiring outlooks moving into the next year, and the Federal Reserve is said to be considering tapering its economic stimulus into the coming months.

Retail sales since the same period last year have risen 4.7 percent.

[USA Today] [Wall Street Journal]