U.S. December Retail Sales Flatline, Miss Forecasts

(MENAFN) December's retail trade figures revealed a surprising stagnation in consumer spending, defying analyst predictions and marking a sharp deceleration after November's robust performance, federal data disclosed Tuesday.

The US Census Bureau reported retail activity remained unchanged month-over-month in December, falling short of the 0.4% growth Wall Street had anticipated. Total transaction volume reached $735 billion, following the prior month's 0.6% surge.

Building materials and garden equipment dealers led sector gains with a 1.2% climb, while sporting goods, hobby, musical instrument and book retailers posted a 0.4% advance. Modest upticks emerged at gasoline stations (+0.3%), food and beverage outlets (+0.2%), and nonstore retailers (+0.1%).

However, significant pullbacks hit multiple categories. Miscellaneous store retailers and furniture sellers each tumbled 0.9%, with clothing merchants dropping 0.7%. Electronics and appliance stores slipped 0.4%, while motor vehicle and parts dealers, health retailers, food services and drinking establishments, and general merchandise stores all contracted between 0.1% and 0.2%.

Core retail sales—the metric factored into GDP calculations that excludes food services, automotive dealers, construction materials outlets and fuel stations—ticked downward 0.1% for the month.

Year-over-year comparisons showed retail sales climbing 2.4% in December, maintaining annual growth momentum despite the monthly plateau.

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