Retail sales rose a better-than-expected 0.6% in November as the holiday
season kicked into gear
[January 15, 2026] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Shoppers increased their spending in November from
October as holiday shopping kicked into full gear.
Retail sales rose a better-than-expected 0.6% in November, following a
revised 0.1% decline October, according to the Commerce Department. The
report on Wednesday was delayed more than a month because of the 43-day
government shutdown.
Retail sales rose 0.1% increase in September, but jumped 0.6% in July
and August and 1% in June.
The federal government is gradually catching up on economic reports that
were postponed by the shutdown.
The retail sales figures, which are not adjusted for inflation, showed
that in most cases shoppers focused on gifts and pulled away from other
areas.
Sales at clothing and accessories stores rose 0.9%, while online
businesses had a 0.4% increase. Business at sporting goods and hobby
stores was up 1.9%. But furniture and home furnishing stores posted a
0.1% dip, while consumer electronics and appliance stores saw their
business unchanged in November from October.
The snapshot offers only a partial look at consumer spending and doesn’t
include many services, including travel and hotel lodges. But the lone
services category – restaurants – registered an uptick of 0.6%.
A category of sales that excludes volatile sectors such as gas, cars,
and restaurants rose in November by a solid 0.4%, a sign that consumers
are still spending on discretionary items.
“Consumers are gloomy, but they are still spending," said Heather Long,
chief economist at Navy Federal Credit Union. "The only areas they are
pulling back in are home improvement, home furnishings and some
electronics and appliances. Outside of those areas, consumers continue
to spend and they are likely to keep that up in early 2026 as they
receive larger-than-normal tax refunds. ”
The report comes as 41,000 attendees from retailers, brands and
technology companies gathered for the annual three-day National Retail
Federation convention. Shoppers have been growing anxious about high
prices and impact of President Donald Trump’s tariffs, as well as a
souring job market. So the outlook for shopping for this year was a key
issue that dominated discussions.
The industry wrapped up a solid holiday shopping season, based on early
data, but many consumers, particularly from the lower income households,
remain financially strained.
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People walk by a shop on Tuesday, Jan. 6, 2026, in Portland, Ore.
(AP Photo/Jenny Kane)
 Hiring has generally been weak,
which could hurt consumer spending and the broader economy for 2026.
Inflation cooled a bit last month as prices for gas and used cars
fell, a sign that stubbornly elevated cost pressures are slowly
easing, according to a report from the Labor Department Tuesday.
Consumer prices rose 0.3% in December from the prior month, the same
as in November. Excluding the volatile food and energy categories,
core prices rose 0.2%, also matching November’s figure. Increases at
that pace, over time, would bring inflation closer to the Federal
Reserve’s target of 2%.
Many economists had predicted inflation to jump last month as the
government resumed normal data collection after the six-week
shutdown last fall, so the modest increases that matched the
November figures came as a relief. The price of manufactured goods
was flat in December, a sign that the impact of tariffs may be
starting to fade.
The National Retail Federation predicts that retail sales in
November and December grew between 3.7% and 4.2% over 2024. That
translates to a range between $1.01 trillion and $1.02 trillion. By
comparison, holiday sales for 2024 rose 4.3% over 2023 to reach
$976.1 billion.
The trade group will not be report final results for the November
and December period until next month when the government reports
December retail data.
Lululemon Athletica said on Monday that it anticipates
fourth-quarter profit and revenue to come in at the high end of its
previously released outlook, helped by a solid holiday shopping
season. And Abercrombie & Fitch Co. said on Monday that both its
Hollister and Abercrombie fared well during the holiday season.
A better picture of holiday spending will come next month when
Walmart, Macy's and other major retailers report fiscal
fourth-quarter results.
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