Americans spent at a faster clip in December, closing out a year of surprising economic resilience largely driven by the US consumer.
Spending at US retailers rose 0.6% in December from the prior month, the Commerce Department reported Wednesday. That was a faster pace than November’s 0.3% gain, also beating economists’ expectations. Retail sales are adjusted for seasonal swings, but not inflation.
Sales at department stores jumped 3% in December, the most of any category. Spending at car dealerships, clothing stores and online also increased at a solid pace last month.
Meanwhile, sales at gas stations, furniture stores and personal-care shops declined in December.
Spending is heavily influenced by the state of the labor market, and Wednesday’s report coincides with government data showing that employers continued to hire at a solid clip last month as the unemployment rate held steady at a low 3.7%. US consumers have also been racking up debt over the past year.
December’s strong retail figures suggest that American shoppers could continue to fuel the US economy in 2024, though economists expect hiring and spending to run at a slower pace compared to last year.
This story is developing and will be updated.
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