Retail Sales Defy Expectations, Rebound in November

November retail sales in the US surprised economists with a growth of 0.3%, defying expectations of a decline. Excluding auto and gas, sales increased by 0.6%. While some categories saw increases, such as food services and sporting goods, sales at gasoline stations and miscellaneous stores dropped. The report reflects a slowdown from the strong summer spending, and economists predict a continued slowdown in the labor market and spending growth heading into 2024. The Federal Reserve, which kept interest rates steady, expects lower growth next year. The resilience of the consumer suggests a soft landing for the economy, but it also indicates that the Fed may not cut rates as quickly and as much as the markets anticipate.