Nov. Retail Sales Beat Forecasts

Retail sales rebounded strongly in November as U.S. consumers spent freely in auto showrooms as well as appliance stores, according to a government report Thursday.

In a preliminary report, the Commerce Department said retail sales rose a seasonally adjusted 0.9% from October to $322.4 billion. The increase, much of it driven by auto sales, exceeded analysts’ expectations and followed stagnant or lower sales in the two previous months.

Excluding volatile auto and food sales, retail sales nationwide rose 0.4%.

Auto sales rose 2.6% from October as a new round of rebates attracted consumers. Other significant sales gains were posted by appliance and electronic stores -- up 2.2% -- and furniture stores reported a 1% increase as those retailers continued to benefit from strong home sales.

Department store sales sagged 1.1%, and sales at sporting goods and music stores slipped 0.5%.

Though many major retailers reported November sales that fell below expectations, the results boosted hopes for a significant rise in holiday retail sales.

The Commerce Department also reported that business inventories in October rose 0.4%, in the second consecutive monthly increase. Economists said the expansion was a sign that businesses were confident about future sales and demand.

In a separate report, the U.S. Labor Department said new jobless benefits claims for the week ended Dec. 6 rose 13,000 from the previous week to a seasonally adjusted 378,000. The four-week moving average, a more stable figure, grew by 2,250 to 364,750.

Jobless claims have risen in recent weeks, but they have remained below 400,000, a level many economists say points to an improving job market.

In California, unemployment claims for the week ended Nov. 29 fell 19,629. State officials attributed the drop to a shortened holiday workweek and fewer layoffs in the service industry.