The U.S. economy suffered losses due to the coronavirus pandemic, and unfortunately, the pandemic is not over yet. It is worth mentioning that, U.S. retail sales fell more than expected in November, weighed down by the number of coronavirus cases. As well as decreasing household income.
People should take into account that, retail sales declined for the second month in a row, and this fact underlines the severity of the problem. Moreover, this factor could force Congress to agree on another fiscal stimulus package. Importantly, the sales fell 1.1% in November, with receipts declining almost across the board.
As a reminder, data for October was changed to show sales dropping 0.1% instead of rising 0.3% as previously reported, adding a sting to the report. Interestingly, October’s dip was the first since April, when strict measures to limit the spread of the virus caused problems for the economy.
People should take into account that, motor vehicles suffered the biggest losses. Receipts at auto dealerships stated tumbling 1.7% after being unchanged in October. Moreover, receipts at clothing stores declined by 6.8%. This is not the end of the story, as of November consumers spent less money on restaurants. Notably, sales at restaurants and bars 4.0%.
Furthermore, sales at electronics and appliance stores dropped 3.5% and receipts at furniture stores fell 1.1%. Also, receipts decreased at sporting goods, hobby, musical instrument, and book stores.
However, sales at food and beverage stores rose as dit those at building material stores. Moreover, online and mail-order retail sales rose a modest 0.2%.
Retail sales and main findings
As stated above, the country’s economy suffered serious losses due to the coronavirus pandemic. Importantly, excluding automobiles, gasoline, building materials, and food services. Retail sales fell 0.5% in November, after a downwardly revised 0.1% in October. Importantly, these so-called core retail sales have most common with the consumer spending component of gross domestic product (GDP).
Unfortunately, the number of people filing new claims for unemployment benefits jumped to a near-three month high in the first week of this month. As a reminder, the situation in the country is far from being ideal. The U.S. is struggling to cope with a fresh outbreak of coronavirus infections, and it would take time to stabilize the situation.
Unfortunately, millions of people across the country are still out of work. Moreover, millions of unemployed and underemployed Americans will lose government-funded benefits on December 26. Lawmakers from both parties should work together to approve another stimulus package by the end of the year.