U.S. Retail Sales Surge in November

Retail sales in the U.S. soared beyond expectations in November, highlighting the resilience of the household sector and the ongoing support of consumer spending for robust economic growth.

In November, retail spending climbed by 0.6%, surpassing even the most enthusiastic predictions. Analysts from Econoday had forecasted a mere 0.2% rise, with estimates varying from a 0.5% decline to a modest 0.4% increase.

When looking at year-to-date figures, sales saw a 3.7% uptick compared to the same period last year. During these eleven months, consumer prices experienced a rise of about 2.7%, suggesting a real sales increase of around 1%.

Notably, sales at auto and auto parts dealerships skyrocketed by 1% from the previous month in November. On a year-over-year basis, these sales were up 4%, while prices in this sector increased only by 0.6%, suggesting that Americans purchased significantly more cars in 2025 than they did the year before.

Gas prices went up by 3% in November but dipped in December and January. Consequently, sales at gas stations saw a rise of 1.4%. Yet, when compared to the period from January to November 2024, gas station sales dropped by 1.7%, though gasoline prices climbed by 0.9%.

Excluding gas stations and car dealers, retail sales in November still achieved a 0.4% increase. Comparing these figures to the first eleven months of 2024, there was a 4.4% rise in sales.

Sales in restaurants and bars also saw growth, with a 0.6% increase in November, reflecting strong consumer confidence, especially in discretionary spending categories. Year-to-date, expenditures in restaurants have risen by 5.4%, outpacing inflation, which sits at 3.7%.

Furthermore, sales from the “control group,” which helps gauge gross domestic product (GDP), rose by 0.4% for the month, reinforcing expectations for solid growth in the fourth quarter.

Various sectors benefited from increased sales, including online retailers, hobby stores, bookshops, clothing outlets, and home and garden centers. However, department store sales declined, remaining stable within the wider general merchandise category. Sales in furniture stores took a hit, while health and beauty shops enjoyed increased sales.

Interestingly, the general residual category—which encompasses florists, second-hand stores, and pet supply outlets—saw significant growth at 1.7%, with a year-to-date increase of 9.1%.