Retail sales rose by 0.4% in December, slightly below the 0.6% forecast. However, gains were seen in 10 out of 13 categories. The control group reading, excluding autos, gasoline, building materials, and food services, jumped by 0.7%, which could potentially boost GDP estimates.
What’s the bottom line?
December’s sales figures indicate strong consumer demand during the holiday season. This aligns with the Fed’s latest Beige Book, which is a survey of economic conditions across the country. The report stated, “Economic activity increased slightly to moderately across the twelve Federal Reserve Districts in late November and December. Consumer spending moved up moderately, with most Districts reporting holiday sales that exceeded expectations.”