American consumers wrapped up the year in a spending mood, buying all sorts of merchandise from furniture to clothing and eating out at restaurants, according to the latest government snapshot.
The figures, announced Thursday, marked a clear sign that consumers are still able and willing to shop, and the data bodes well for 2025 even as shoppers remain deal-focused.
Retail sales rose 0.4% in December from the previous month, the Commerce Department said, though down from November’s upwardly revised 0.8% gain.
The figures suggest that even as many Americans are struggling with higher prices and elevated interest rates, a low unemployment rate and rising wages are encouraging millions of consumers to spend, bolstering economic growth. Last Friday the government reported employers stepped up hiring in December and the unemployment rate fell to a low 4.1%.
Last month’s sales growth was below economists’ projections, “but this was actually a strong report,” said Paul Ashworth, chief North American economist at Capital Economics. The sales figure was held down by a sharp drop at building materials stores and a small decline at restaurants. Otherwise, most types of retailers reported solid gains.