US retail sales rise less than 0.2%

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Retail sales in the United States experienced a slowdown in November rising just 0.2%. And with sales lower than expected, retailers have countered by offering major discounts.

For retailers, this is the season to be nervous.

Total US retail sales rose a lower-than-expected 0.2% in November. Thats a slowdown from the upwardly revised gain of 0.6% the month before, according to figures by the Commerce Department.

Novembers rise was the weakest in five months, but its still early in the crucial holiday shopping season says American economist Brian Jones of Societe Generale.

Customers shop for electronics items during 'Black Friday' at a Best Buy store in San Diego, California. US retail sales on Black Friday hit a new record for the start of the holiday shopping season that follows Thanksgiving, according to early estimates. (AFP Photo/Sandy Huffaker)

He said, "We really dont have a full tally on how good the late November and the Thanksgiving sales were, so I would wait to see those. I mean what we can say about spending, given this mornings report is it looks like the spending pace thus far in Q4 is in-line with that of the third quarter at around 2-1/2 percent in real t! erms."

And with consumer spending responsible for 70% of US economic growth - thats enough to support forecasts that the economy is doing better than it was earlier this year.

A woman checks her list as shoppers browse through items on sale at a Target store in Rosemead, east of Los Angeles on November 25.

But there are still real concerns:

Best Buy announced quarterly results, which missed targets. Heavy discounting brought shoppers into the store, but the retailer made less money on each sale.

He said, "I think that the thing is that that has been a problem in retailing for quite some time across all retailers; that consumers are willing to wait them out especially when it comes to the holiday shopping season, because they know that if they are patient there are probably more discounts down the road as the holiday season winds down."

Discounts that could make this a jolly season for consumers and the overall economy, but a not-so-happy time for some retailers.

Editor:Zhang Jingya |Source: CNTV.CN



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