November retail sales surpass expectations

Washington

US retail sales increased more than expected in November as the holiday shopping season got off to a brisk start, pointing to sustained strength in the economy that could pave the way for further Federal Reserve interest rate hikes next year.

The economic outlook was also bolstered by other data on Thursday that showed the number of Americans filing for unemployment benefits dropping to near a 44½-year low last week.

The Fed offered a rosy assessment of the economy in its latest policy statement on Wednesday, describing activity as "rising at a solid rate". The US central bank raised borrowing costs…