US consumers started the holiday shopping season in a jollier mood than Wall Street expected as November retail sales rose, the government reported.
The US Commerce Department said November sales rose 0.4 per cent to a seasonally adjusted $302.53 billion. Excluding autos and parts, sales were up a larger 0.5 per cent.
The gains were bigger than Wall Street analysts had expected and show the US consumer continues to provide key support for the wobbly economy. Retail sales are a large part of consumer spending, which makes up about two-thirds of overall US economic activity.
November's gain was led by a 2.3 per cent increase in sales at furniture and home furnishing stores, the biggest advance in the category since January 2001. Demand for building materials and garden supplies also was strong, rising 1.2 per cent.
However, one weak spot in the report was a sharp 1.4 per cent decline in department store sales.
The deficit in the US current account balance - the broadest picture of international trade and investment flows - unexpectedly narrowed in the third quarter, the Commerce Department said.
The current account gap fell to $127.04 billion in the quarter from the revised record of $127.61 billion in the second quarter. This was the first time in a year the deficit has narrowed. Wall Street had anticipated a wider gap.