US shoppers set for strong holiday season

 
Chris Papadopoullos
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US RETAIL sales jumped by 0.7 per cent in November compared to October, data showed yesterday.

It marks an improvement on the 0.5 per cent month-on-month increase in October, according to the US Commerce Department.

Core sales – which ignores cars, petrol, building materials and food services – climbed 0.6 per cent month-on-month. They were buoyed by a 1.2 per cent rise in clothing sales.

Sales at electronic and appliance stores grow 0.9 per cent while online sales rose one per cent.

Sales in November were 5.1 per cent higher than last November.

“The rapid rises in employment mean that this holiday shopping season will be the best in nine years,” said economist Paul Dales from Capital Economics.

The figures imply a boost in the consumption component of GDP and has raised the economic outlook for the US economy.

“Lower energy prices and an improving labour market are clearly having a positive impact on the US consumer and there is little reason why this shouldn’t continue over the next several quarters,” said economist Joseph LaVorgna from Deutsche Bank.

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