Retail Sales rose 0.6% from November to December, beating forecasts and coming in even stronger than the 0.3% gain seen in November. Sales were also up 5.6% when compared to December 2022.
What’s the bottom line? Spending at department stores, car dealerships, clothing stores and online boosted sales last month, giving some retailers a strong holiday season. While this data suggests a resilient economy, retailers likely lured shoppers with holiday discounts last month, so we’ll have to see if the strong level of spending continues this quarter. The Fed will be watching this data closely, as the strength of our economy will impact their monetary policy decisions.