The Commerce Department reported that consumers pulled back on spending in November, failing to keep up with inflation.
The decline in retail sales for the month was worse than expected. The number is not adjusted for inflation as gauged by the Labor Department's consumer price index, which was below expectations.
Excluding autos and gas sales, the measures showed a small decline.
The stock market fell after the economic data was released. The stock market was off a lot in early trading.
There was a widespread pull back. Building materials and garden centers were down 2.5%, motor vehicle and parts dealers were down 2.3%, and furniture and home furnishings stores were down 2.5%.
Service stations sales were down, but not by much.
Bars and restaurants increased and food and beverage stores increased.
Retail sales increased on a year over year basis.
"With weak global growth and the strong dollar compounding the domestic drag from higher interest rates, we suspect this weakness is a sign of things to come," Andrew Hunter wrote of the retail report.
The Labor Department reported Thursday that weekly unemployment claims fell to 211,000, a decline of 20,000 from the previous period and well below the estimate of 232,000 by the Wall Street Journal. The number of continuing claims went up to 1.621 million.
There was a contraction in manufacturing activity in the Fed districts.
The Empire State Manufacturing Survey recorded a reading of -11.2 against the estimate of -0.5.
The percentage difference between expansion and contraction is shown. A slide in the general business conditions index contributed to a 16 point drop in the reading. The prices in the region were little changed.
The Philadelphia Fed survey was still negative despite a 6 point rise. New orders, unfilled orders and delivery times weighed on the index. The prices that were paid and received fell for the region.
Hunter said that they expect further weakness in manufacturing due to the strong dollar and a global recession.
All Rights Reserved © 2024
