Retail sales fall more than expected in November

U.S. retail sales fell more than expected in November, likely payback after surging in the prior month, while the labor market remains tight, with the number of Americans filing for unemployment benefits declining last week.

The Commerce Department said on Thursday that retail sales dropped 0.6% last month. Data for October was unrevised to show sales accelerating 1.3%. Economists polled by Reuters had forecast sales dipping 0.1%.

Retail sales are mostly goods and are not adjusted for inflation. Last month’s decline in sales suggests holiday shopping was pulled forward into October. Motor vehicle shortages also depressed sales at auto dealerships.

[The decline in retail sales is much sharper in real terms, ie, with inflation adjustments. It’s not a good sign for the economy, especially at this time of year. The burst in October looks as though it basically shifted future demand for the holiday retail season,. — Ed]