U.S. Retail Sales Rise in November
U.S. retail sales unexpectedly rose in November, led by autos and services, while modest wholesale inflation bolsters forecasts for stronger fourth-quarter GDP.
KEY TAKEAWAYS
- Retail sales rose 0.6% in November, beating consensus and boosting growth forecasts.
- Motor-vehicle purchases powered the gain while ex-autos and control measures also advanced.
- PPI rose 0.2% m/m and core wholesale inflation stayed modest, supporting fourth-quarter GDP.
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U.S. retail sales increased 0.6% in November 2025, the U.S. Census Bureau reported, driven by motor-vehicle purchases and gains in services and apparel. The rise supports stronger growth prospects as wholesale inflation remained modest, according to the Bureau of Labor Statistics.
Consumer Spending Strengthens in November
Retail sales reached $735.9 billion in November, surpassing economists’ expectations of a 0.4% to 0.5% increase. October’s figure was revised down to a 0.1% decline from flat. Excluding autos, sales rose 0.5%, beating forecasts, while the October ex-autos figure was revised up to 0.2%. Sales excluding autos and gasoline increased 0.4%, matching prior revisions. The control group, which excludes autos, gas, building materials, and food services, also rose 0.4%, down from a previous 0.6% reading.
Motor-vehicle sales rebounded and accounted for much of the monthly gain. Retail categories showed notable year-over-year strength, with food-service receipts up 4.9% and clothing accessories rising 7.5%. Gains also appeared at sporting-goods, hobby, and apparel stores, indicating growth in both goods and experience-oriented spending during the holiday season.
Wholesale Inflation Remains Modest, Supporting Outlook
The Producer Price Index (PPI) for final demand rose 0.2% month-to-month in November, below the 0.3% consensus and matching October’s pace. On an annual basis, the index increased 3.0%. Core PPI, which excludes food and energy, also rose 0.2% monthly and 3.0% annually, signaling only modest wholesale inflation pressures.
Data collection for October and November was delayed by the 2025 lapse in appropriations, affecting some Census and BLS releases. Consumer spending accounts for about two-thirds of U.S. gross domestic product. Economists say the combination of resilient household demand and muted wholesale-price gains supports forecasts for stronger fourth-quarter 2025 GDP growth. The National Retail Federation’s Retail Monitor showed holiday sales from November 1 to December 31, 2025, up about 4.1%.
