WASHINGTON -- The nation's retail sales rose 1.9 percent in November, the most in six months, the government said today, and the report was hailed as a signal of a very merry Christmas for merchants.
The increase to a record $102.45 billion showed cash registers were busier as the holiday buying season got under way faster than most analysts expected.
Sales would have been up a fairly strong 1 percent even without the month's 3.5 percent jump in automobile sales, the Commerce Department said.
Sales in October were revised upward in the latest report to a 1.4 percent increase, the same as September.
'It really is terrific news,' said economist Sandra Shaber of the Chase Econometrics analysis firm. 'I have hardly ever seen a situation which was anticipated with more optimism. Everybody agrees this is going to be a great Christmas.'
With 40 percent or more of annual sales occurring after Thanksgiving, retailers hope to make up for a miserable 1982 and several weak months this year with a holiday boom.
The improvement in November is evidence 'of a general business recovery and declining unemployment,' White House spokesman Larry Speakes said.
Commerce Secretary Malcolm Baldrige, in a statement prepared by his economic advisers, said, 'The recovery celebrated its first birthday with vigorous growth in production and income.'
Retailers, he added, 'are enjoying the merriest holiday selling season in many years.'
Following a steep decline in August, the nation's retailers have enjoyed three consecutive months of especially healthy sales, sustaining their hopes for the best Christams season in several years.
But the November improvement missed the home furnishing industry where sales fell 1.2 percent.
Gasoline service stations were the only other major category to go down, a likely result of price declines rather than a drop in the volume of sales.
Clothing stores reported a 1.9 percent improvement. All figures were seasonally adjusted.
Retail sales in November made the strongest gains since May's 3.1 percent jump and for the first 11 months of the year have been increasing at a blistering 14.1 percent annual rate.
Sales in recesssion-struck 1982 went up only 5.8 percent.
Durable good sales helped by the continuing strength of auto purchases, were up 3.96 percent, just slightly under September.
Non-durables sales were up 0.85 percent.
The pace of retail sales, have been crucial for the economic recovery, reflecting the enthusiasmn of consumers who until recently have been the recovery's biggest motivating factor.
The leveling off of new housing construction did not prevent a 1.3 percent increase in the sales of building materials in November.
Food stores showed a 0.6 percent increase while restaurants and bars reported their November sales were up a hefty 3.1 percent.
