This morning we got the first good evidence that the big decline in gas prices is helping American consumers. Retail sales ex- gas increased +0.9%. Total retail sales increased +0.7%. October retail sales were also revised up +0.2% to +0.5%. Here's the graph of retail sales since January 2013:
Since inflation was unchanged in October, that means real retail sales in October set a new high. Here are real retail sales through October with this morning's revision:
November prices are likely to be unchanged again, or even to show a decrease. This means real, inflation-adjusted retail sales in November may actually have increased more tha +0.7%.
This is solid evidence that the decline in gas prices is having a positive effect on the US economy, and average American households.