Good news! So much for the consumer being tapped out!

Retail sales increased by 1.2%, the Commerce Department said Thursday. Sales went up an unrevised 0.2% in October.

The median estimate of 10 economists surveyed by Dow Jones Newswires was a 0.6% advance in November. Analysts have been expecting consumer spending -- and the economy as a whole -- to slow sharply in the final months of 2007 compared to the third quarter because of falling home prices and rising energy costs.

The retail sales report illustrates where Americans are spending their money. Consumer spending is a big part of the economy. It makes up about 70% of gross domestic product, which is the scoreboard for the economy.

The other news today is that wholesale prices soared last month at their fastest pace since the Nixon Administration. It appears most of the problem is due to energy and light truck prices. Scary headline, but that's about it.