Ka-chingle all the way to better econ
A NOVEMBER spending spree helped give the economy a needed dose of holiday cheer.
Overall retail sales were up 0.7% from the previous month — the largest gain since March — and 5.1% above November 2013, the Commerce Department said Thursday.
Sales excluding automobiles, gasoline, building materials and food services jumped 0.6% after climbing 0.5% in October.
The increased spending was fueled by lower gas prices that provided households with extra cash for shopping, plus a rise in consumer confidence thanks to an improving labor market.
In a separate report the Labor Department said first-time claims for unemployment benefits dropped to a three-week low as layoffs declined.
Claims, which have been below 300,000 for 12 of the past 13 weeks, fell by 3,000 to 294,000 in the week ended Dec. 6.
The positive data helped the stock market claw back some of its big losses from Wednesday.
The Dow was up about 200 points in early trading, but closed 63 points higher, at 17,596. The S&P 500 and Nasdaq
rebounded as well, both closing about 0.5% higher than the previous day.
While the November numbers were given a lift by a big jump in vehicle sales, economists said a 1.2% increase in clothing sales from October was a sign the holiday shopping season was off to a solid start.
“Increasing wages combined with lower gas prices are providing retailers with an early holiday present this year,” said Jack Kleinhenz, chief economist for the National Retail Federation, which on Thursday said it was sticking to its forecast of a 4.1% gain in holiday sales.
“Every economic indicator is pointing toward a strong holiday season.”