WASHINGTON — Sales at department stores and apparel and accessories retailers were flat last month compared with October after accounting for seasonal variations, according to the Commerce Department’s monthly sales report, released Wednesday.
Total retail and food service sales last month rose 1 percent compared with October, when sales dropped 0.1 percent. It was the first monthly gain since July. Against a year earlier, overall November sales advanced 5.6 percent.
However, compared with a year ago, sales at clothing and accessories stores were up 6.7 percent to $18.3 billion, while department stores slid 2.1 percent to $17.6 billion. Business at fashion retailers has been disappointing this month, but may get a boost up in the week before Christmas and immediately after the holiday.
“December got off to a slow start, following the rush of Black Friday,” Jennifer Black, president of her namesake research firm, said in a report after visiting specialty stores on Monday and Tuesday. “We have heard this last weekend business really picked up across the board. The consumer is either procrastinating or waiting for the retailers’ extra promotions.”
Taking note of the overall picture, Michael Niemira, chief economist at the International Council of Shopping Centers, said, “The story is one of strength…even in the discretionary areas such as electronics. Even motor vehicles notched up.”
Although the estimates of sales in the Commerce Department’s monthly report always are open to revision, Niemira said there is special reason to focus on overall trends instead of individual numbers this month, since the Commerce Department changed the way it puts together the survey.
Although department and specialty sales were even for the month, overall consumer spending remains buoyant, which is an encouraging sign, but might come at a cost, economists said.
“It’s good in the sense it will help pump up economic growth in the third and fourth quarters,” said Charles McMillion, president and chief economist at MBG Information Services. “It’s troubling because incomes aren’t keeping up with the spending, so that means trouble down the road. We’re borrowing from the future.”
Even with some positive economic news, from employment gains to a narrower trade deficit, McMillion said consumers might pull back on shopping to rebuild their savings in the first half.
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“Households have been spending more than their entire income for 19 consecutive months and I just don’t think they can keep this up forever,” he said.