United States retail sales posted a moderate gain in December, signalling strong consumer demand as households spent on motor vehicles and a variety of goods. The momentum reinforces the Federal Reserve's cautious stance on interest rate cuts in 2025.
The Commerce Department reported on Thursday that retail sales rose 0.4% last month, slightly under 0.6% expected, following an upwardly revised 0.8% increase in November. Year-over-year, retail sales grew 3.9%.
Strong performances were noted across various sectors, including a 0.7% rise in auto dealership sales, a 2.3% jump in furniture store receipts, and a 1.5% rebound in clothing sales.
Specialty stores also saw gains, with sales at sporting goods, hobby, musical instrument and book stores climbing 2.6%, while miscellaneous retailers, such as gift shops and florists, reported a 4.3% increase.
However, online sales edged up just 0.2%, and dining-related receipts at food services and drinking establishments declined by 0.3%.
Building material store sales dropped 2%, while higher fuel costs drove a 1.5% increase in gasoline station receipts.