Consumers cut back on spending in November, unable to keep up with even modest levels of inflation for the month, the Commerce Department reported Thursday.
retail sales It fell 0.6% for the month, worse than the Dow Jones forecast of a 0.3% decline. The figure, not adjusted for inflation as measured by the Labor Department’s consumer price index, which rose 0.1% in November, was also below expectations.
Measurements excluding cars and both car and gas sales showed a 0.2% decline.
Stocks plunged following a mostly disappointing round of economic data released Thursday morning. The Dow Jones Industrial Average fell nearly 500 points in early trading.
The price drop spread across categories. Furniture and home goods stores were down 2.6% for him, building supplies and garden stores were down 2.5% for him, and car and parts dealers were down 2.3% for him.
Gas station sales fell by just 0.1%, despite falling petrol prices.
Online sales were also down 0.9%, bars and restaurants were up 0.9% and restaurants were up 0.8%.
Year-on-year, retail sales increased by 6.5%, while CPI inflation was 7.1%.
“This weakness is a sign of things to come, as a weaker global economy and a stronger dollar add to the domestic drag from higher interest rates,” said Andrew Hunter, senior U.S. economist at Capital Economics in the Retail Report. I don’t think so,” he said.
In other economic news on Thursday, the Labor Department said weekly unemployment claim It fell to 211,000, down 20,000 from the previous period and well below the Dow Jones estimate of 232,000. Recurring claims running one week late rose to 1,671,000.
Another survey from regional Federal Reserve districts also showed manufacturing activity contracted in December.
of Empire State Manufacturing SurveyMeasuring activity in the New York area recorded a measurement of -11.2 against an estimate of -0.5.
This represents the percentage difference between companies reporting growth and contraction. This month’s reading represents a dip in contraction territory of about 16 points, largely due to the decline in the General Business Conditions Index. Stocks in the region also fell, but the price index remained largely unchanged.
Similarly, Philadelphia Fed investigation rose 6 points, but was still negative at -13.8 against an estimate of -12. New orders, unfulfilled orders and a sharp decline in delivery dates weighed on the index. However, prices have dropped significantly in the area and both the price we paid and the price we received fell.
“Further weakness in manufacturing is expected as exports suffer from the impact of the strong dollar and global recession,” Hunter said.
