Retail sales increased a moderate 0.4 percent in November as higher furniture and building supply receipts offset disappointment at department stores, the government said Tuesday.
The gain, to a seasonally adjusted $178.9 billion, marked the eighth consecutive increase and the longest string since a 13-month streak from March 1989 to March 1990, before the recession.It followed a strong 1.8 percent jump in October, which was revised up from an earlier estimate of 1.5 percent, the Commerce Department said.
The increase, a shade under the 0.5 percent predicted by economists, fit with economists' belief that more consumer spending will fuel the best economic growth of the year during the fourth quarter.
Sales at furniture stores in November soared 3.7 percent, the best monthly gain in 10 years. Sales at building supply, hardware and garden stores rose 1.1 percent after a 3.4 percent rise a month earlier.
Both gains are related to an upturn in home sales, fueled by mortgage rates near a 25-year low.
However, sales at department and other general merchandise stores fell 1 percent, nearly reversing a 1.1 percent gain in October. Store owners said snow in the Midwest and rain in the Northeast kept some shoppers home on the traditional start of the holiday shopping season. They're hoping to make up for it with stronger sales in December.
Auto sales, which had soared 5 percent in October, edged down 0.1 percent in November. Excluding the volatile auto sector, sales rose 0.5 percent last month.
Sales also rose 0.1 percent at both food stores and gas stations, 0.5 percent at drug stores and 1.4 at clothing and accessory shops.
However, they fell at restaurants and bars, 0.6 percent.