According to fresh data from the United States Census Bureau, retail sales steadily rose by 0.6% in December 2023. This topped analyst predictions of a 0.4% increase for the last month of the year.
US retail sales for December 2023 higher than expected
The December increase bettered November retail sales by 0.3%, confirming the resilience of American shoppers while bolstering the economy. The numbers also allay fears of stinted economic growth, starting the new year on a positive financial footing.
Out of the 13 categories monitored, nine experienced sales increases compared to November 2023. Clothing, fashion accessories, and non-store retailers recorded a 1.5% jump. Health and personal care shops, however, took a 1.4% knock. This month-on-month comparison also showed petrol station sales were down by 1.3%. The figures exclude automotive and fuel sales.
An annual comparison indicated that automotive and fuel sales increased by 4.9%. Eateries and drinking establishments also boosted sales by 11.3%. On the back of falling fuel prices, spending at petrol stations dropped by 11.5%.
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Analysts contemplated the brawn of the US economy and how strongly it will start the new year. Many expected growth to scale down, but these statistics show continued momentum, which may influence the US Federal Reserve to stay its course regarding interest rates. In a CNBC interview, the managing director of trading and investing for E-Trade from Morgan Stanley,Chris Larkin commented:
The Fed was already hammering away on its ‘no rush to cut rates’ message, and today’s stronger-than-expected retail sales won’t give them any reason to change their tune.
