Americans spent more last month — with one exception

U.S. consumer spending remained strong in November, signaling that the economy is still moving forward despite ongoing inflation concerns.

According to the latest data from the U.S. Department of Commerce, retail sales across the country increased by 0.7% in November, building on a revised 0.5% rise in October.

One notable area of growth was sales at motor vehicle and parts dealers, which rose 2.6%. This increase was largely driven by a surge in vehicle repairs and replacements following damage caused by Hurricane Helen and Hurricane Milton this past fall.

Meanwhile, non-store retailers saw 1.8% increase in sales. These e-commerce businesses, including companies like Amazon (AMZN-0.27%) and eBay (EBAY+0.74%), saw growth in categories such as sporting goods, books, hobby items, and musical instruments during the holiday shopping season. The hobby-focused stores saw a smaller, but positive, 0.9% increase. These figures reflect continued consumer interest in personal hobbies and non-essential purchases, despite inflation pressures.

While online shopping surged, traditional brick-and-mortar stores faced challenges. Department stores saw a slight sales decline of 0.6%, while miscellaneous retailers experienced a sharper drop of 3.5%.

But even so, November’s data shows that, despite rising costs and inflation concerns, Americans are continuing to spend, particularly on vehicles and leisure items.