2017.12.1423:15:00UTC+00US Retail Sales Jump, Weekly Unemployment Claims Drop

U.S. retail sales rose more than anticipated in November as the holiday shopping season kicked off to an active start, indicating sustained strength in the economy that could provide Federal Reserve interest rate hikes in 2018.

Latest data also showed that the number of Americans filing for jobless benefits fell to near a 44-½ year low the previous week.

According to the Commerce Department, retail sales increased 0.8 percent in November, with households purchasing a range of goods even as they cut back on buying motor vehicles.

October data was revised to show sales increasing 0.5 percent than the initially posted 0.2 percent rise.

Retail sales picked up 5.8 percent on an annual basis. Sales were also supported by a 2.8 percent growth in sales at service stations, which reflected higher gasoline prices.

Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.8 percent in November after increasing 0.4 percent in October. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

In a separate report, the Labor Department said initial claims for state jobless benefits fell 11,000 to a seasonally adjusted 225,000 for the week ended Dec. 9. That was the lowest reading since mid-October when claims declined to 223,000, a level not seen since March 1973.

The Fed provided a bright assessment of the economy in its latest policy statement, describing activity as “rising at a solid rate.” The U.S. central bank raised borrowing costs for a third time in 2017 and forecast three rate hikes for next year.