US retail sales rose sharply last month as holiday shopping got underway amid signs American consumers are continuing to drive economic growth despite a slowdown in the housing market.
Retail sales increased by 1 per cent to $368.9bn, rising five times faster than expected and sending shockwaves through financial markets.
The strong lift underscores the Federal Reserve’s view that the economy is headed for moderate growth and that the housing slowdown will not unduly undermine consumer confidence.
The figures indicate that a two-speed economy is emerging with consumer-led growth in the service sector leading as manufacturing and construction activity lag.