Consumers gave retailers only a modest boost in November, showing a reluctance to spend lavishly at the start of the holiday shopping season.
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Last month, retail sales climbed to $465.5 billion, up 0.1% from October and up 3.8% from November 2015, the Commerce Department said Wednesday. Some forecasts had predicted a rise of at least 0.3%.
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In addition, October retail sales were revised down to 0.6% from a previous estimate of 0.8%.
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Retail sales in November can be a crucial barometer of consumer sentiment and retail performance for the overall season — a make-or-break period when retailers can sometimes rake in 40% of their annual sales. The results may signal a slight slowdown among shoppers after several months of strong gains.
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Other recent reports have given more upbeat forecasts of the economy in the fourth quarter.
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The Labor Department recently reported that 178,000 net jobs were added in November, while the unemployment rate fell three-tenths of a percentage point to 4.6% — the lowest since 2007. These positive economic signs mean the Federal Reserve is likely to announce Wednesday that it is raising interest rates.
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November’s growth was dragged down by a 0.5% decline for auto and other motor vehicle dealers. If that category is stripped out, overall retail sales grew 0.2%.
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In all, 10 out of 13 categories reported growth.
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Sales at electronics and appliance stores, always a popular category during Black Friday sales, grew 0.1%. Furniture store sales were up 0.7%.
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Department stores, which have been struggling as shoppers increasingly turn online and to specialty boutiques, reported a 0.2% drop.