November retail sales signal strong holiday shopping season
New government data released Tuesday bolstered retailers’ hopes that consumers are shaking off the recession and pulling out their wallets just in time for the most critical sales months of the year.
The Commerce Department reported a 0.8 percent increase in retail sales in November from the previous month, with big gains at clothing stores, sporting goods chains and department stores. It also revised its estimate for October upward, from a 1.2 percent gain to 1.7 percent.
The strong results, combined with the recent stock market rally, prompted an influential industry trade group to raise its holiday sales forecast Tuesday. The National Retail Federation said it now predicts that November and December sales will grow 3.3 percent compared with last year, one percentage point higher than its original estimate.
“It’s been a while since we’ve really seen the retail industry drive strong economic growth,” NRF spokesman Scott Krugman said. “Pent-up demand is meeting discounts, creating better than expected results for the holiday season.”
