Retail sales remained completely unchanged in December compared to November, closing out the holiday shopping season and the entire year on a distinctly lackluster tone. Shoppers significantly pulled back the pace of their spending during the crucial final month of the year, according to the latest data from the Commerce Department.
Sales Figures Miss Expectations
The report, which was delayed by more than a month due to the 43-day government shutdown, showed retail sales were flat in December from November, when business had increased by a solid 0.6%. Economists had been expecting a 0.4% increase for December, making the actual figures particularly disappointing for market observers.
Declines Across Multiple Sectors
The retail sales figures, which are not adjusted for inflation, revealed that many types of businesses experienced declines during December. Furniture and home furnishing stores posted a substantial 0.9% drop, while electronics and appliance stores registered a 0.4% dip. Clothing and accessories retailers saw a 0.7% decline in sales.
The lone services category included in the report – restaurants – also registered a slight dip of 0.1%. This snapshot offers only a partial look at overall consumer spending, as it doesn't include many services such as travel and hotel lodges.
Concerns About Consumer Confidence
The report has raised serious questions about shoppers' ability and willingness to spend as they worry about a slowing job market and ongoing uncertainty around President Donald Trump's tariffs and their potential impact on prices. The flat December sales following November's growth suggests consumers may be becoming more cautious with their spending habits.
This retail data provides important insight into consumer behavior during what is typically the busiest shopping period of the year. The lack of growth in December sales indicates that despite holiday promotions and discounts, shoppers remained restrained in their spending, potentially signaling broader economic concerns among the general public.
