US retail sales volumes 'strong' in November

US retail sales volumes rose as forecast last month, alongside upwards revisions to prior months' data, resulting in a "strong" report overall, according to analysts, despite the drag from lower gasoline prices.

And further strength was likely, they said.

According to the Department of Commerce, retail sales volumes grew in November at a month-on-month clip of 0.2% to reach $524.15bn (consensus: 0.2%).

Meanwhile, October's increase in retail sales was revised to show an increase of 1.1%, versus a preliminary estimate of 0.8%.

Excluding sales of motor vehicles, retail sales were up by 0.3% (consensus: 0.3%) and those for October marked-up to show a rise of 1.0% (Preliminary: 0.7%).

The biggest increases in sales versus the month before were seen in Electronics&Appliances (1.4%), Furniture&Home furnishings (1.2%), Health&personal care stores (0.9%) and non-store retailers (2.3%).

"These data, though, are preliminary, and subject to potentially large revisions. The strong Redbook survey pointed to a big jump in core sales, but the survey is still running well ahead of the official numbers, so further strength in the latter or more upward revisions are a decent bet," said Ian Shepherdson at Pantheon Macroeconomics.

"The kick from the tax cuts is gone, but the huge and rapid drop in retail gas prices is freeing-a great deal of cash at just the right time for retailers. Expect to see estimates for Q4 consumption, GDP, and retailers’ earnings revised up on the back of this report. So much for the slowdown […]."