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Retail sales jump in November
Consumer spending in U.S. recovers from October slump; numbers exceed Wall Street's expectations.
December 11, 2003: 10:13 AM EST

NEW YORK (CNN/Money) - Retail sales rose in the United States in November, the government said Thursday, beating analysts' forecasts as consumer spending rebounded from a slump in October.

The Commerce Department said retail sales rose 0.9 percent to $322.4 billion after being flat in October. Excluding volatile automobile sales, retail sales rose 0.4 percent after rising a revised 0.4 percent in October.

Economists, on average, expected sales to rise 0.7 percent and sales excluding autos to rise 0.3 percent, according to Briefing.com.

Initially, the department reported that sales had declined in October.

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"Consumers are not going to have as much strength in the fourth quarter as they had in the third, but the positive trend for consumer spending is still intact," Richard Rippe, chief economist at Prudential Financial, told CNNfn.

Separately, the Labor Department reported that weekly claims for unemployment benefits rose unexpectedly last week to their highest level in six weeks. U.S. stock prices rose in early trading, while Treasury bond prices fell.

Wall Street pays close attention to consumer spending, which makes up more than two-thirds of the total U.S. economy. Consumer spending exploded in the third quarter, fueled by tax rebate checks and proceeds from mortgage refinancing, and pushed total economic growth to an 8.2-percent rate, the fastest in nearly 20 years.

That spending has slowed down in the fourth quarter, as the effects of the rebate checks and refinancing have faded, but a slowly improving labor market has helped keep consumers shopping during the holiday season, critical to retailers.

November's sales rebound was driven by a 2.6-percent gain in the sales of automobiles and parts, following October's 1.4-percent decline.

But many other industries enjoyed gains as well -- sales at electronics and appliance stores jumped 2.2 percent, furniture sales rose 1 percent and clothing sales rose 1.1 percent.

Sales at gasoline stations rose 1.6 percent, reflecting higher prices for gas, following October's 1.9-percent decline.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.