U.S. Retail Sales Unexpectedly Flat in December

US retail sales were unexpectedly unchanged in December, putting consumer spending and the overall economy on a slower growth path heading into the new year, Reuters reported.

Retail had been strong despite consumers being downbeat about the economy amid higher prices from tariffs and a softening labor market. (Photo: Mall of America)

The flat reading in retail sales last month followed an unrevised 0.6% increase in November, the Commerce Department’s Census Bureau said.

Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would rise by 0.4%. The Census Bureau is still catching up on data releases after delays caused by last year’s government shutdown.

Retail had been strong despite consumers being downbeat about the economy amid higher prices from tariffs and a softening labor market.

That has come at the expense of saving, with the saving rate falling to a three-year low of 3.5% in November from 3.7% in October. It has dropped from a peak of 31.8% in April 2020.

But household wealth has surged, driven by a strong stock market rally and still-high home prices.