US retail sales fall in November

US retail sales fell more than expected in November, in what may be an adjustment after the previous month’s rise.

The Commerce Department reported that retail sales fell 0.6% last month. Data for October was unchanged to show that sales accelerated 1.3 percent. Economists polled by Reuters had forecast sales to fall 0.1 percent.

Retail sales are mostly goods and are not adjusted for inflation. The decline in sales last month suggests that holiday shopping has been brought forward to October. The shortage of motor vehicles also depressed sales at dealerships.

The boost from one-time tax refunds in California, where some households received up to $1,050 in stimulus checks in October and Amazon’s second Prime Day, faded last month.

Other factors hurting sales included a churn in back-to-service spending and discounting by retailers eager to lure cash-strapped consumers to reduce unwanted inventory.

High inflation and interest rate increases are constraining household budgets, though consumer spending has remained resilient, thanks to a strong job market.

The Federal Reserve on Wednesday raised its policy rate by half a percentage point and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023.

Excluding autos, gasoline, building materials and food services, retail sales fell 0.2% last month.