U.S. retail sales grow strongly above expectations in November

The U.S. retail sales grew strongly above consensus expectations in November. Sales were up 0.8 percent sequentially, as compared with consensus expectations of 0.3 percent. Also, the data for October were upwardly revised.

Sales of furniture, electronics and building materials were solid in November, along with sales at gasoline stations and non-store retailers. Motor vehicles and parts was the only major category to record a drop in the month, falling 0.2 percent sequentially. The retail sales control group, which excludes the effect of volatile components such as food, gasoline, building materials and autos, also rose 0.8 percent sequentially. Moreover, the upward revision to October’s data indicates towards a stronger starting point for retail sales in the fourth quarter.

Stronger than anticipated retail sales data pushed Barclays’ PCE tracking estimate higher by five-tenths to 3 percent and gave a modest boost to residential investment. Meanwhile, the PPI inflation data released earlier this week came in stronger than expected, driving the estimates of inventories and equipment investment lower, stated Barclays.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -76.963. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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