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Last Update: 13-Dec-11 10:00 ET
Retail Sales Edge Higher, but Miss Expectations
The anecdotal media reports of strong Black Friday sales levels did not show up in the retail sales report. Sales increased 0.2% in November, a notable slowdown after increasing 0.6% in October. The Briefing.com consensus expected retail sales to increase 0.6%.
While the lack of strength in the retail sales report is disappointing, it is actually not that big of a surprise. The November employment report showed that payroll growth was completely offset by declining hourly wages. Aggregate earnings were flat in November. The small retail sales gain, therefore, is in-line with the weakness in earnings.
Motor vehicle sales remained firm and increased 0.5% in November. That level of growth, however, was weaker than what the manufacturers reported earlier in the month.
Excluding motor vehicles sales, retail sales increased 0.2%. The consensus expected these sales to increase 0.5%.
Many sectors that saw positive (negative) growth in October reversed directions in November. This includes clothing stores (0.5% vs. -0.8%), department stores (0.3% vs. -1.1%), building materials and supply stores (-0.3% vs. 1.4%), food and beverage stores (-0.2% vs. 0.7%), and miscellaneous store retailers (-1.2% vs. 0.4%).
While the lack of strength in the retail sales report is disappointing, it is actually not that big of a surprise. The November employment report showed that payroll growth was completely offset by declining hourly wages. Aggregate earnings were flat in November. The small retail sales gain, therefore, is in-line with the weakness in earnings.
Motor vehicle sales remained firm and increased 0.5% in November. That level of growth, however, was weaker than what the manufacturers reported earlier in the month.
Excluding motor vehicles sales, retail sales increased 0.2%. The consensus expected these sales to increase 0.5%.
Many sectors that saw positive (negative) growth in October reversed directions in November. This includes clothing stores (0.5% vs. -0.8%), department stores (0.3% vs. -1.1%), building materials and supply stores (-0.3% vs. 1.4%), food and beverage stores (-0.2% vs. 0.7%), and miscellaneous store retailers (-1.2% vs. 0.4%).
