December Retail Sales Stagnate Unexpectedly
US consumers displayed unexpected behavior in December as retail sales remained stagnant amid economic concerns. The Commerce Department reported that retail sales did not change from the previous month, contrasting sharply with November’s increase of 0.6%.
Key Statistics from December Retail Sales
This data was released on a Tuesday, following a one-month delay due to a government shutdown last year. The unchanged figure in December was significantly lower than the anticipated 0.4% increase projected by economists from FactSet.
Category Breakdown
- Declines:
- Furniture stores: -0.9%
- Miscellaneous stores: -0.9%
- Increases:
- Home improvement stores: +1.2%
Overall, retail spending advanced in only a few select categories during December.
Consumer Sentiment and Economic Outlook
The control group, which indicates underlying demand by excluding more volatile categories, showed a decrease of 0.1% for December. This was well below forecasts of a 0.4% gain.
Throughout the past year, hiring rates in the United States have drastically slowed. Consumer sentiment regarding the economy has diminished, and inflation levels remain persistently high. Despite these economic challenges, consumer spending has not reduced significantly.
However, the flat retail sales in December may indicate that consumers could be reaching their spending limits. Further developments regarding this situation are expected as new data emerges.
