US retail sales surprise with sharp November drop

Retail sales volumes in the US fell by much more than expected last month as the holiday season got off to a very weak start.

According to the Department of Commerce, in seasonally adjusted terms, retail sales volumes shrank at a month-on-month pace of 1.1% to hit$546.5bn.

Economists had penciled-in a reading of -0.2%.

Making matters worse, October's print was revised down to show a dip of 0.1%, against a previous estimate of a 0.3% increase.

Excluding motor vehicles and parts, retail sales dropped by 0.9% when compared against October, with those of motor vehicles and parts plummeting by 1.7% to $104.03bn.

Sales at electronics and appliance stores meanwhile dropped by 3.5%, those at fashion stores by 6.8%, and food services and drinking sales fell by 4.0%.