Retail sales rise faster than expected in December during key holiday season

foxbusiness.com:

National Retail Federation CEO Matt Shay dissects consumer spending and the retail industry as shoppers hit stores across the country for Black Friday.

Americans picked up their spending in December during the pivotal holiday season even as they continued to confront high interest rates and steeper prices for everyday goods.

Retail sales, a measure of how much consumers spent on a number of everyday goods including cars, food and gasoline, rose 0.6% in December, the Commerce Department said Wednesday. That is above both the 0.4% gain projected by Refinitiv economists and the revised 0.3% increase recorded in November.

Excluding the more volatile measurements of gasoline and autos, sales still climbed 0.6% last month.

The December advance is not adjusted for inflation, meaning that consumers may be spending the same but getting less bang for their buck.

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A shopper browses at a record store in Atlanta on Feb. 14, 2023. (Dustin Chambers/Bloomberg via Getty Images / Getty Images)

Consumers continued to spend money at car dealers, grocery stores, building material and garden supply stores, and clothing stores. They also continued to open their wallets when online shopping, with spending at non-store retailers jumping 1.5% from the previous month.

However, Americans pulled back their spending at gas stations, health and personal care stores, electronics and appliance stores and furniture stores. Spending was flat at bars and restaurants, a bellwether of discretionary spending.

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Sales rose in eight of 13 retail categories last month.

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