MNI DATA ANALYSIS: US November Retail Sales Up 0.2%>

--Retail Sales Ex. Motor Vehicle +0.2%; Ex. Mtr Veh and Gas +0.5%

By Kevin Kastner

     WASHINGTON (MNI) - The value of retail sales rose by 0.2% in 

November overall and 0.2% excluding motor vehicle sales, above 

expectations for 0.1% gains in both categories and capping off 

underlying strength outside of a brisk gasoline station decline, data 

released by the Commerce Department Friday showed. 

--GAS SALES PLUNGE, BUT STRENGTH ELSEWHERE

     Motor vehicle sales posted a more modest 0.2% increase after 

October's 1.5% jump, while gasoline station sales fell by 2.3% in 

November after a 3.2% surge in October. However, outside of both motor 

vehicles and gasoline, retail sales posted a 0.5% gain. 

     Retail sales excluding autos, gasoline, and building materials were 

up 0.6% in November. Further, excluding food services as well as the 

other three measures, retail sales were up 0.9% after a 0.7% gain in 

October, suggesting underlying strength. 

     Much of the strength can be found in the nonstore retailer 

category, which rose 2.3% after a 0.8% gain in October. This category 

includes online spending and suggests Black Friday deals did entice 

customers to spend. Additionally, electronics store sales rose by 1.4% 

and furniture store sales rose by 1.2%. 

     Food services and drinking places' sales fell by 0.5%, while 

clothing stores sales fell by 0.2% in the month and building materials 

sales fell by 0.3%. Sales of building materials are likely to be lifted 

in the coming months by rebuilding efforts in the hurricane-impacted 

regions. 

--Q4 CONSUMPTION RUNNING STRONG

     Incorporating the revisions to sales in previous months, fourth 

quarter retail sales were up 4.3% at an annual rate from the third 

quarter average, pointing to forward momentum. 

     Sales excluding motor vehicles were up 3.9%, at an annual rate from 

the previous quarter, while sales excluding autos, building materials, 

and gas were up 3.2%. When food services were also excluded, fourth 

quarter sales were up 4.6% at an annual rate from the third quarter, 

suggesting PCE growth will be solid to end the year. 

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

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