American shoppers shrugged off any pressure that might exist in the economy, increasing their spending during the holiday season.
Shoppers upped spending in November from October, according to statistics released by the Commerce Department, which said Wednesday that retail sales rose a better-than-expected 0.6% in November. According to a report from The Associated Press, that followed a revised 0.1% decline in October. The Commerce Department report was delayed more than a month because of the 43-day government shutdown.
Retail sales rose 0.1% increase in September, but jumped 0.6% in July and August and 1% in June, according to the AP.
The retail sales figures, which aren’t adjusted for inflation, showed that, in most cases, shoppers focused on gifts and pulled away from other areas.
According to the AP report, sales at clothing and accessories stores rose 0.9%, while online businesses had a 0.4% increase. Business at sporting goods and hobby stores rose 1.9%. But furniture and home furnishing stores posted a 0.1% dip, while consumer electronics and appliance stores saw their business unchanged in November from October, the AP reported.
The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered an uptick of 0.6%.
A category of sales that excludes volatile sectors such as gas, cars, and restaurants rose in November by a solid 0.4%, a sign that consumers are still spending on discretionary items.
“Consumers are gloomy, but they are still spending,” Heather Long, chief economist at Navy Federal Credit Union, told the AP. “The only areas they are pulling back in are home improvement, home furnishings and some electronics and appliances. Outside of those areas, consumers continue to spend and they are likely to keep that up in early 2026 as they receive larger-than-normal tax refunds.”
