–Ex Auto & Gas +0.5%; Autos -0.8%, Gasoline +4.0%

By Joseph Plocek

WASHINGTON (MNI) – U.S. November retail sales data surprised to the
up-side, marking a fifth large monthly gain and coming in above
consensus.

November retail sales printed +0.8%, ex-autos printed +1.2%, and
ex-autos and gas printed +0.5%. These were better than expected.

In addition, October sales were revised up to +1.7% (was +1.2%),
so the Q4 average is strengthening. December remains the biggest sales
month and analysts will be reluctant to put a growth number to Q4
until more is known about December.

Also, note that holiday sales started earlier than usual due to an
early Channuka and that analysts will have to average November and
December to get a proper reading.

November sales were uneven, with gains centered in food at +0.8%,
healthcare +0.9%, gasoline +4.0%, clothing +2.7%, and sporting goods
+2.3%. Declines were seen in autos and parts -0.8%, furniture -0.5%,
electronics -0.6%, and building materials -0.1%.

Restaurants posted a mere +0.1%, so there might still be some
reluctance to buy pure discretionary goods.

Overall sales advanced 6.7% over the year through November, a very
decent gain. However, about a third of the year’s sales could still come
in December.

**Market News International Washington Bureau: (202)371-2121**

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