span>span>Thursday 16th January 2025/span>span> - 15:03 (GMT)/span>/span>
US retail sales rose by 0.4% in December 2024, the smallest increase in four months and below the anticipated 0.6% rise. This follows a revised 0.8% gain in November, indicating a slight cooling in consumer spending.
Notable growth occurred in miscellaneous store retailers (+4.3%), sporting goods and hobby stores (+2.6%), and furniture outlets (+2.3%). However, declines were observed in building materials and garden equipment (-2%), food services and drinking places (-0.3%), and health and personal care stores (-0.2%).
Core retail sales, which exclude food services, auto dealers, building materials, and gasoline stations, increased by 0.7% - the highest in three months and suggests underlying consumer strength.
The modest rise in retail sales may temper expectations for aggressive Federal Reserve interest rate hikes, potentially softening demand for the US dollar. Nonetheless, the solid increase in core retail sales highlights the economy's resilience, which could continue to attract investors to USD-denominated assets.
All eyes now turn to the incoming Trump administration who will likely take a more bullish approach to stimulate the wider US economy. The 47th US president will be sworn back into power on the 20th January and is expected to make economic growth his key priority for 2025.
