The Atlanta Federal Reserve updated its GDPNow model of US economic growth in the fourth quarter to 3.0% from 2.4% on December 7th. The report cited a stronger estimate for fourth quarter real personal consumption expenditures that climbed to 4.1% from 3.3% following today’s retail sales and industrial production numbers.
The ‘retail sales control group’ which is included in GDP calculations surged 0.9%, more than double the 0.4% estimate and the prior month also was sharply higher after revision to 0.7% from 0.3%. This category excludes motor vehicles, building material gasoline and food service sales. Overall November retail sales increased 0.2% as did the ex-autos number, both as predicted. These figures were weakened by the decline in energy costs. Retail sales are not corrected for prices changes. Annual sales rose 4.22% increased 4.22% and October’s yearly rates climbed to 4.80% from 4.57% following adjustment.
Industrial production rose 0.6% last month twice the prediction though October’s 0.1% gain was revised to -0.2%.