Late government data released on Tuesday showed that retail sales in the United States did not grow in December, defying analysts’ expectations, and increasingly highlighting the state of American consumer confidence, a key driver of the economy.
Data from the Commerce Department showed that total sales remained flat on a monthly basis at $735 billion. This represents a decline from the 0.6% growth recorded in November, which saw a rebound thanks to the end-of-year shopping season.
A Decline in Spending
However, spending appears to have declined, contrary to the expectations of economists who were surveyed and who had predicted growth of 0.4%.
The Commerce Department report showed a decline in spending across various categories including auto dealers, furniture stores, electronics stores, as well as restaurants and bars. Sales at auto dealers fell by 0.2% from the previous month, while sales at furniture stores declined by 0.9%.
Sales at restaurants and bars saw a slight decrease of 0.1%. However, consumers continued to spend on basic necessities like groceries. Compared to last year, retail sales rose by 2.4% in December, a slight slowdown from the growth rates in November.
