US Economy Defies Expectations with Strong Retail Sales and Low Layoffs

US retail sales unexpectedly rose in November, indicating consumer resilience and easing fears of a recession. The increase in sales, driven by deep discounting and lower gasoline prices, suggests a strong start to the holiday shopping season. The Federal Reserve's decision to hold interest rates steady and signal lower borrowing costs in 2024 reflects confidence in the economy. Economists predict that fourth-quarter consumer spending could grow by as much as a 2.75% annualized rate, contributing to GDP growth. Additionally, weekly jobless claims fell, indicating a stable labor market.