WASHINGTON (AP) – Americans increased their retail spending just slightly in November, a possible sign of lackluster holiday shopping.
Retail sales rose only 0.1 percent in November, after a downwardly-revised 0.6 percent growth in October, the Commerce Department said Wednesday.
Consumers bumped up their purchases at restaurants and furnishers last month. But they also trimmed spending at auto dealers and department stores, limiting the overall advance in retail sales.
More Americans entered the holiday season poised to shop. The improving job market has pushed unemployment down to 4.6 percent and prompted signs of accelerating wage growth. Over the past 11 months, retail sales have risen a solid 3.1 percent compared to the same period in 2015. The greater retail sales helped support overall economic growth.
Consumer spending accounts for the majority of all U.S. economic activity. It has disproportionately contributed to an economy that expanded at an annual clip of just 1.8 percent over the first nine months of 2016. And more Americans turned optimistic about the economy after Donald Trump’s presidential election with consumer sentiment improving.