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Retail sales show surprising strength with 1% gain:

Sales of durable goods, gasoline lead broad-based gains...

By Rex Nutting, MarketWatch
Last Update: 8:30 AM ET Dec 13, 2006

http://tinyurl.com/ya4zda

WASHINGTON (MarketWatch) - Showing surprising strength, seasonally adjusted U.S. retail sales increased by 1% in November, the largest gain since July, the Commerce Department reported Wednesday.

Excluding the 0.9% gain in motor vehicle sales, retail sales rose 1.1%, the largest gain since January.

Sales were much stronger than the 0.2% gain expected by economists surveyed by MarketWatch. They expected sales excluding autos to rise 0.3%.

Chain stores and auto makers had reported weak sales in November than were not reflected in the government's data.

The strong figures could force economists to re-evaluate their judgment that the economy is growing at a rate less than 2% annualized in the current quarter, particularly after a larger-than-expected decline in the trade gap reported Tuesday.

Sales in October were revised higher by three-tenths to a 0.1% decline. Sales excluding autos were revised slightly in October to a 0.3% decline.

Sales are up 5.6% in the past year. The figures are not adjusted for price changes.

In November, sales were strong in almost every retail sector. Only furniture stores showed a decline, falling 0.1%. Department store and clothing store sales were flat.

HDTV to the rescue:

The biggest gains were seen in electronics and appliance stores, where sales jumped 4.6%, the biggest increase since January.

Sales at building materials and hardware stores rose 1.8%. Sales of appliances, furniture and building materials had been weak in recent months as the housing market cooled.

Gasoline station sales rose 2.3%, as gasoline prices turned higher during November. Excluding gasoline, retail sales rose 0.9%.

Sales at general merchandise stores rose 0.4%, including no change in department store sales.
Sales at nonstore retailers, such as catalog and online stores, rose 1.3%.

Sales at food and beverage stores increased 0.9%. Sales at restaurants and bars rose 0.7%.

Sales at health and personal care stores increased 0.9%. Sales at leisure-time activity stores, such as music, sporting goods and books, rose 0.8%.

Rex Nutting is Washington bureau chief of MarketWatch.