Quotes from Capital Economics:
– The strong rise in retail sales in November shows that we were right to dismiss all the reports that holiday sales have been weak. The truth is that the rapid rises in employment mean that this holiday shopping season will be the best in nine years.
– More importantly, the larger-than expected rise in November implies that fourth-quarter real consumption growth will be at least 3.0% annualised. GDP growth will be between 2.5% and 3.0%.
– Overall, the recent strengthening in underlying retail sales shows that retailers are starting to benefit from the rapid rises in employment that are supporting incomes. Moreover, as far as real consumption goes, the slump in gasoline prices will provide an additional boost that spills into the first quarter.
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