01/17/2024

U.S. Retail Sales Beat Expectations in December

The behavior kept the U.S. economy on solid ground

U.S. retail sales increased more than expected in December as consumers stepped up purchases of motor vehicles and retailers offered discounts, keeping the economy on solid ground heading into the new year.

Retail sales rose 0.6 percent last month, the Commerce Department's Census Bureau said on Wednesday. Data for November was unrevised to show sales rising 0.3 percent as previously reported. Economists polled by Reuters had forecast retail sales gaining 0.4 percent. Retail sales are mostly goods and are not adjusted for inflation.

Households have maintained a healthy pace of spending, thanks to a relatively strong labor market. Though spending has cooled from the third quarter's brisk rate, it has been enough to keep a recession at bay.

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