Retail Sales Soar 0.9% as CPI Barely Rises

Americans went on a shopping spree last month and pushed retail sales up 0.9%, giving merchants a strong start to the holiday season, while consumer prices barely budged, according to government figures released Tuesday.

The stronger-than-expected spike in November retail sales, the biggest jump in three months, grew from across-the-board demand on everything from cars and clothing to hardware and furniture, the Commerce Department said. That followed a 0.3% rise the previous month.

Meanwhile, the consumer price index rose a scant 0.1% in November, its best showing since June, in a sign that inflation remained dormant despite vibrant economic growth, the Labor Department said. Falling prices for clothing, gasoline and vegetables helped offset rising costs for prescription drugs, airline fares and other items.

Not counting the volatile energy and food categories, prices were up 0.2%, leaving the core rate of inflation rising at an annual rate of 2%, which matches many analysts’ forecasts.

A report from the economy’s industrial sector reflected confidence about steady expansion next year.

According to the National Assn. of Purchasing Management survey, more than half of the respondents said they expected business in the first six months of 2000 to top the pace in the final half of this year.

In another report, the Commerce Department said the deficit in the current account--the measure of trade with the rest of the world in goods and services and in investment flows--deteriorated again to a record $89.95 billion. That surpassed the previous record shortfall of $80.91 billion set in the second quarter.

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Retail Sales

In billions of dollars seasonally adjusted: November: $255.8 billion

Source: Commerce Department