**MNI 5 THINGS: November US Retail Sales +0.2%, Ex-MV +0.2%>

--5 Things We Learned From The November Retail Sales Data

By Kevin Kastner

     WASHINGTON (MNI) - The following are the key points from the 

November retail sales report from the Commerce Department released 

Friday:               

     - November retail sales were up 0.2% in the month, slightly above 

analysts projections for a 0.1% gain, but well below the 0.9% gain 

expected by markets. The modest headline gain hides significant 

underlying strength when a large gasoline station drop is removed. 

October sales were revised up to a 1.1% gain. 

     - Excluding a 0.2% gain in motor vehicle sales, retail sales were 

still up 0.2% in November, compared with the 0.1% gain expected and 

following an upward revision to October. 

     - November sales were up 0.5% ex. motor vehicle and gas, only 

slightly behind the 0.7% October gain, and were up 0.9% for the 

"control" group (ex auto, building materials, gas and food services), 

stronger than the 0.7% rise in October. The data suggest that the 

underlying current of sales remained strong in November. 

     - Gas station sales fell 2.3% in the month (retail sales ex. gas 

+0.5%), while building materials sales were down 0.3% and food services 

sales were down 0.5%. There were gains in every other component except 

for clothing, with a sharp 2.3% rise in sales at nonstore retailer, 

suggesting a strong Black Friday performance. Building materials sales 

are likely to rise sharply in the coming months as rebuilding efforts in 

the hurricane-impacted areas increase. 

     - Fourth quarter sales were up 4.3% vs the third quarter average, 

based on an MNI calculation. Sales were up 3.9% ex motor vehicles, and 

up 4.6% ex autos, building materials, gas, and food services. The data 

suggest that PCE growth remained strong to end the year. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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