US retail sales barely rise in November

US retail sales barely rose in November following two months of strong gains, the Commerce Department revealed on Wednesday.

Retail sales climbed just 0.1% last month, falling short of forecasts for a 0.3% increase. Strong sales of home furnishings, groceries and gasoline, coupled with improved demand at restaurants, was offset by the biggest drop in sales at auto dealers in eight months.

October’s figures were also revised down to 0.6% growth from a previously reported 0.8% rise.

Excluding automobiles and gasoline, retail sales edged up 0.2% in November after a downwardly revised 0.5% gain in October. Economists had estimated a 0.4% increase.

"The trivial rise in headline retail sales in November is partly some payback after the very strong gains in recent months," according to Capital Economics.

"Nonetheless, real consumption growth is now likely to be a more modest 2.0% to 2.5% annualised in the fourth quarter."