Retail sales fell 0.6% in November, the largest decline this year and double what economists expected, as a slowing economy and rising borrowing costs continue to weigh on consumers.

The S&P 500 fell more than 2% after the news, extending Wednesday’s declines which started after the Federal Reserve 澳洲幸运5官方开奖结果体彩网:hiked interest rates. Treasury yields fell, with the yield on the 澳洲幸运5官方开奖结果体彩网:10-year note stabilizing at 3.45%. Markets were also weighed down by weaker-than-expected 澳洲幸运5官方开奖结果体彩网:industrial production data, as well as interest rate hikes from the 澳洲幸运5官方开奖结果体彩网:European Central Bank (ECB) and 澳洲幸运5官方开奖结果体彩网:Bank of England (BoE).

Sales fell in nine out of 13 categories of retailers tracked by the 澳洲幸运5官方开奖结果体彩网:U.S. Census Bureau. The largest declines included a 2.6% drop in sales at furniture and home goods stores and a 2.5% fall in building material and garden center sales. Ecommerce also slumped, with purchases sinking 0.9% despite 澳洲幸运5官方开奖结果体彩网:record-setting Black Friday sales last month.

Bars and restaurants recorded a 0.9% increase in sales, the largest gain of any category. Purchases from food and beverage stores also rose by 0.8%. The shift in consumer spending away from durables and toward 澳洲幸运5官方开奖结果体彩网:consumer staples highlights growing pressure on consumers’ 澳洲幸运5官方开奖结果体彩网:purchasing power.

Unlike most other 澳洲幸运5官方开奖结果体彩网:economic indicators, retail sales are not adjusted for inflation, which means that November’s numbers reflect slowing inflation as well as changes in consumer purchases. Inflation, as tracked by the 澳洲幸运5官方开奖结果体彩网:Consumer Price Index (CPI), 澳洲幸运5官方开奖结果体彩网:slowed to a 7.1% annual rate iওn🍷 November, down from 7.7% in Octo♏ber an🍷d a recent peak of 9.1% in June.

Retail sales were still up 6.5% since November 2021, partly as a result of strong gains during the 🌄first half of 2022, though less than the 8.3% year-over-year rise in October. Until recently, consumer spending had remained robust, driven higher by pandemic-era stimulus checks and transfer payments that had cushioned households’ finances during the COVID-19 pandemic. However, as the Fed has raised interest rates, the slowing economy and increased cost of borrowing money has put a damper on purchases.