US Retail Sales increased by 0.4% month-over-month in December 2024, marking the slowest growth in four months. This followed a stronger, upwardly revised 0.8% rise in November and came in below market expectations of 0.6%. Despite the deceleration, the data suggests that consumer spending remains strong, reflecting resilience in the economy.

Key Sectors Driving Growth

Several retail categories experienced notable increases in December. Sales at miscellaneous store retailers surged by 4.3%, followed by sporting goods, hobby, musical instruments, and books (2.6%), and furniture (2.3%). Gasoline stations and clothing retailers both saw a 1.5% rise, while food and beverage stores, motor vehicle and parts dealers, general merchandise stores, and nonstore retailers also posted modest gains.

Declines in Select Retail Segments

Not all retail sectors saw growth in December. Sales declined in building materials, garden equipment, and supplies dealers by 2%, marking the sharpest drop. Food services and drinking places saw a slight dip of 0.3%, while health and personal care stores recorded a 0.2% decline. These sectors faced challenges despite overall consumer spending resilience.

Read More : US Retail Sales Show Robust Growth in November 2024

GDP-Related Sales See Strongest Growth in Three Months

A key measure of retail sales used in GDP calculations—excluding food services, auto dealers, building materials, and gasoline stations—rose by 0.7%, marking the largest increase in three months. This suggests that while some sectors faced headwinds, the broader retail environment remained healthy, contributing positively to economic growth.

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