December retail sales top estimates to cap strong 2023

December retail sales out Wednesday showed US consumer spending continued to prove resilient to round out 2023, pushing back against fears economic growth stalled in the year’s final months.

Retail sales grew 0.6% in December, according to Census Bureau data. Economists had expected a 0.4% increase, according to Bloomberg data. November retail sales previously posted a surprise 0.3% increase.

December sales, excluding auto and gas, increased by 0.6% compared to estimates for a 0.3% increase.

“Retail sales beat expectations yet again in December,” Nationwide financial markets economist Oren Klachkin wrote in a research note on Wednesday. “Consumers were willing to spend during the holidays and will remain inclined to do so as long as real income gains more than offset the drag from elevated interest rates and tight lending standards.

 

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