US retail sales fell by the most in November in nearly a year, reflecting slack in various categories that suggested some easing in Americans' demand for goods.
The overall value of retail purchases fell 0.6% last month after rising 1.3% in October, Commerce Department data showed Thursday. Excluding gasoline and cars, retail sales fell 0.2%. The figures are not adjusted for inflation. The median estimate in a survey of economists expected a 0.2% decline in total retail sales.
Nine of 13 retail categories fell last month, according to the report, including electronics, furniture and building materials stores. Vehicle sales also declined, partly due to lower prices for used cars and trucks. Sales value at gas stations fell 0.1% as oil prices fell.
Sales at restaurants and bars were the only service sector category in the report to increase with a 0.9% increase in November, the fourth straight increase.
The report suggests some loss of momentum in consumer demand for goods amid high inflation as well as what has been a shift in preference towards services. While wage increases and pandemic-era austerity have helped, Americans are starting to feel the pinch as savings rates near record lows and credit card balances have soared.
Other data on Thursday showed that the labor market remained resilient with the fewest weekly initial jobless filings in more than two months. Meanwhile, two regional Federal Reserve manufacturing gauges showed weaker activity this month.
The Fed is looking for a slowdown in consumer spending that will dampen economic growth to help curb inflation. Policymakers lowered the rate of interest rate hikes on Wednesday as expected, and while inflation has eased in recent months, they acknowledged that price pressures are still too high.
