(Washington) The total amount of retail sales in the United States increased less than expected in November, as end-of-year purchases begin, with the increase remaining mainly driven by gasoline sales, whose prices remain very high. students.
Total sales rose to $ 639.8 billion, up 0.3% from October, according to data released by the Commerce Department on Wednesday. This is less than the 0.8% increase expected by analysts.
The total amount, however, was inflated by inflation, which is now at its highest for almost 40 years.
Retail sales, however, jumped 18.2% from November 2020, when a surge in COVID-19 contamination and the scheduled expiration of some emergency financial aid slowed consumption.
The largest increase is observed at gas stations: + 1.7% compared to last month, and + 52.3% compared to November 2020.
This is not just because Americans are buying more gasoline, but more importantly because prices have been rising for months, before falling slightly in recent weeks.
Food and beverage stores reported a 1.3% month-on-month increase in sales and 8.6% year-on-year growth.
And, as holiday shopping began, sporting goods, music, hobby, and bookstore stores also saw sales climb 1.3% on a month-to-month basis, and even 20% over one year.
In contrast, electronics and appliance stores are struggling, with sales down 4.6% over one month. Year over year, however, the increase is 16.8%.
“Consumers took a break from a spending spree in October. We are still catching up with the slowdown in spending seen during the summer Delta wave, ”commented Diane Swonk, economist for Grant Thornton, in a note.
And she expects another slowdown in the coming months, because of the Omicron variant, which “has already overwhelmed hospitals in some areas and is wreaking havoc on restaurant reservations.” The impact “should appear in the data for the first quarter,” she said.
Retail sales for October were a little higher than initially announced: the Commerce Department revised the data to + 1.8% instead of + 1.7%.
Consumption is the lifeblood of the US economy, and retail sales take the pulse of the world’s largest economy.
Inflation rose to 6.8% in November compared to November 2020, according to the Department of Labor’s Consumer Price Index (CPI). This is the largest price increase recorded since June 1982.