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December Retail Report Signals Consumer Slowdown

Photo by Bernard Hermant / Unsplashon

The U.S. retail sales stalled in December, falling short of expectations as inflation and severe weather slowed holiday shopping, according to the U.S. Commerce Department.

Sales were flat from November, missing economists’ forecast of a 0.5 percent increase, based on a Dow Jones survey.

Excluding autos, sales were also unchanged. On an annual basis, retail sales rose 2.4 percent, down from 3.3 percent in November.

The slowdown capped an otherwise steady year, driven largely by higher income consumers. Spending failed to keep pace with inflation, as consumer prices rose 2.7 percent in December, underscoring continued pressure on household budgets.

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