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U.S. retail sales miss expectations in November -Breaking

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© Reuters. FILE PHOTO – People look for clothing at Target’s Westbury location in New York. This was May 20-21. REUTERS/Shannon Stapleton/File Photo

WASHINGTON, (Reuters) – The November decline in U.S. retail sales was likely a payback for the surge in December. Americans began their holiday shopping earlier than usual to prevent shortages and increase in prices.

Commerce Department on Wednesday reported that retail sales rose 0.3% for October. The Commerce Department revised the October data to reflect a 1.8% increase in retail sales, instead of 1.7% previously reported. For the fourth consecutive month, sales have risen.

Reuters polled economists to forecast that retail sales would rise 0.8%. These estimates varied from an increase of 1.5% to an unchanged level.

Mid-November saw several top U.S. retailers report that they’d noticed a earlier start to holiday shopping.

Global governments provided COVID-19 panademic relief in the amount of trillions of dollars. This increased demand and stretched supply chains. Prices for goods have risen due to shortages ranging from electronics and furniture to vehicles.

The November consumer prices increase was solid 0.8%, and the 6.8% year-on-year growth in November is the highest since June 1982.

The small retail sales gains likely do not alter the view that the economy has reestablished steam following a third-quarter slowdown that was caused by rampant shortages and the Delta variant coronavirus.

Federal Reserve officials had just wrapped up two days of policy meetings and released the report.

In the face of rising inflation, the U.S. central banks is likely to announce that they will accelerate the reduction of their massive monthly bond purchases. It is possible to increase the interest rate early next year.

Retail sales declined 0.1% in November after increasing 1.8% in October. The core retail sales are closely related to gross domestic product’s consumer spending.

Consumption, which is responsible for over two-thirds U.S. economy activity, increased at an annualized 1.7% rate during the third quarter. The fourth quarter’s consumer spending pace is now higher than its third quarter pace.

According to economic growth projections, the rate of economic growth could reach 8.7%. 3.1% was the pace of economic growth in third quarter.

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