"However, gains for traditional retailers will be much weaker due to the increasing reach of online sales".
- Gus Faucher, PNC Financial Services Group
US retail sales rose modestly last month due to lower sales of motor vehicles, official figures revealed on Wednesday. According to the Commerce Department, retail sales advanced 0.1% in November, compared to the preceding month's downwardly revised gain of 0.6%, whereas analysts expected sales to grow 0.3%. Year-over-year, sales increased 3.8%. Excluding volatile items, core retail sales climbed 0.1%, following October's 0.6% rise and falling behind the 0.4% gain market forecast. Analysts suggest the US presidential elections had some degree of general impact on sales last month, as traditionally November marks the start of the important holiday shopping season. Separately, the Labor Department reported that its Producer Price Index grew 0.4% on a monthly basis in November, the biggest increase since June, after remaining unchanged last month. On a yearly basis, producer prices rose 1.3%, the largest gain since November 2014.
In the meantime, the US Federal Reserve raised interest rates for the first time in a year. Also, Fed chairwoman Janet Yellen announced a 0.25% hike in the benchmark rate to 0.50-0.75%, and predicted three further rates increase in 2017.
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