Retail sales grow by 0.4% month-on-month in December, slower than expected
2025.01.16 09:27
Investing.com – US increased at a slower than anticipated month-on-month rate in December, in the latest data point that could paint a picture of the state of the American economy heading into the new year.
Retail sales grew by 0.4% last month, decelerating from an upwardly revised pace of 0.8% in November, according to Commerce Department numbers on Thursday. Economists had called for a reading of 0.6%.
Spending at automotive dealerships eased and expenditures on building material and garden equipment store sales fell by 2%. Gasoline station sales rebounded by 1.5% on a monthly basis, although analysts at Capital Economics noted that this was less than expected given a recent jump in gas prices.
However, receipts of sporting goods, hobby, musical instrument and book stores jumped during the key pre-Christmas shopping season.
In a note to clients, the analysts at Capital Economics led by Chief North America Economist Paul Ashworth said that while the retail sales figure was weaker than projected, it was still strong enough to boost their expectations for fourth-quarter growth.
The number also represents “a strong handover to the first quarter, when we expect consumption growth to slow only modestly, particularly if households increase spending in an attempt to front-run likely tariffs,” Ashworth said, referring to sweeping import levies proposed by the incoming Trump administration.
(This is a developing story. Please check back later for updates.)
