Connect with us

Hi, what are you looking for?

Editor’s Pick

Americans reduce retail spending as US inflation bites

Retail sales dropped by 0.6 per cent in the United States last month, more than anticipated and a sign of Americans’ caution in the face of sustained inflation at the start of the holiday shopping season.

The fall in November, which exceeded economists’ expectations of a drop of about 0.1 per cent, came after an increase of 1.3 per cent in October.

Shoppers spent less on categories including electronics, clothing and cars. Retail sales comprise mostly goods and, unlike many other official data releases from the US government, this report is not adjusted for inflation. Price growth hit its highest level in a generation in America this summer, before moderating slightly. The country’s consumer prices index slipped to an annual pace of 7.1 per cent in November.

Yesterday’s retail sales reading was one of several economic releases that rattled investors. Industrial production fell by 0.2 per cent in November, driven by a 0.6 per cent drop in manufacturing activity, according to the US Federal Reserve.

Such reports have compounded apprehension over the prospect of a recession in the world’s largest economy. The Fed, having lifted US interest rates from close to zero to their highest level in 15 years, has made clear it expects to push them higher in 2023.

“The 0.6 per cent month-on-month falls in retail sales and manufacturing output in November suggest that the economy has lost some serious momentum, with the resilience of consumers to much higher interest rates starting to crumble,” Andrew Hunter, at Capital Economics, said.

The lower retail sales and the Fed’s stance on rates sent markets lower, with the Dow Jones industrial average closing down 764.13 points, or 2.6 per cent, at 33,202.22. The S&P 500 was off 2.5 per cent, or 99.57 points, at 3,895.75 and the Nasdaq was 3.2 per cent, or 360.36 points, lower at 10,810.53.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

A VIEW of the city skyline in Shanghai, China, Feb. 24, 2022. — REUTERS SHANGHAI — Chinese state media on Thursday cautioned against risks...

News

REUTERS SEOUL — South Korea’s anti-trust regulator said on Thursday it would impose a combined fine of 42.3 billion won ($33.48 million) on three...

News

CHRIS BARBALIS-UNSPLASH JAPAN is exchanging information on Chinese spy balloons with the United States, top government spokesperson Hirokazu Matsuno said on Thursday. There have been confirmations of suspected balloons flying over Japan,...

News

CODY LOGAN/WIKIMEDIA COMMONS SYDNEY — The Australian government will examine surveillance technology used in offices of the defense department, Defence Minister Richard Marles said...

News

CODY LOGAN/WIKIMEDIA COMMONS SYDNEY — The Australian government will examine surveillance technology used in offices of the defense department, Defence Minister Richard Marles said...

News

SEOUL — Nuclear-armed North Korea showcased its missile production muscle during a nighttime parade, state media reported on Thursday, displaying more intercontinental ballistic missiles...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.