United States: Retail sales growth eases in December but remains strong
Latest reading: Retail sales increased 0.4% month-on-month in seasonally adjusted terms in December (November: +0.8% mom). This was weaker than market expectations, though partly as the previous month’s reading was revised up. In December, the biggest increases were seen in sales at miscellaneous store retailers; sporting goods, hobby, musical instrument and books; and furniture.
Over Q4 as a whole, retail sales were robust, which is likely to translate into a strong private consumption outturn in the quarter.
Panelist insight: TD Economics’ Ksenia Bushmeneva said:
“Despite the headline retail sales figure coming in below expectations, growth in core sales remained very healthy in December, suggesting U.S. consumers ended 2024 on a high note. It’s easy to see why. The labor market remained strong, continuing to add jobs through the end of the year, while inflation has subsided (particularly in the goods category), and household wealth remains elevated.”