December Sales Flat as Debt Burdens Shoppers

Retail sales were unchanged in December from November, a weak result demonstrating shopper unease as economists expected a 0.4% increase.

Sales declined in eight of 13 retail categories.

Heather Long, chief economist at Navy Federal Credit Union, called the holiday shopping season “solid, but not spectacular,” saying consumers were hunting for bargains, Sabrina Escobar, Megan Leonhardt and Janet H. Cho reported for Barron’s Daily.

The report suggests the pullback in spending was widespread.

Sales declined in eight of 13 retail categories, falling 0.9% at miscellaneous goods retailers and furniture stores, dropping 0.7% at clothing stores, and declining 0.4% at electronics stores.

Gregory Daco, chief economist at EY Parthenon, said that while some affluent households continued to spend freely through the holidays, most consumers were far more judicious and frugal, relying increasingly on credit and taking money from savings to sustain outlays.

Total US household debt rose 1% to $18.8 trillion during the fourth quarter, according to the New York Fed.

Credit-card debt totaled $1.3 trillion at the end of 2025, and the increase in outstanding card balances nearly doubled from the third quarter. Fed researchers noted that the annual card balance growth rate slowed to 5% in the fourth quarter of 2025 from 7.3% in the fourth quarter of 2024.

But the ability for households to pay down that debt remains in question. Wage and job growth have weakened.