U.S. Retail Sales Rise 0.4% In December, Less Than Expected

(RTTNews) - The Commerce Department released a report on Thursday showing retail sales in the U.S. increased by less than expected in the month of December.

The report said retail sales rose by 0.4 percent in December after advancing by an upwardly revised 0.8 percent in November.

Economists had expected retail sales to climb by 0.6 percent compared to the 0.7 percent increase originally reported for the previous month.

The slowdown by the monthly pace of retail sales growth came as sales by motor vehicles and parts dealers grew by 0.7 percent in December after spiking by 3.1 percent in November.

Excluding auto sales, retail sales still rose by 0.4 percent in December after inching up by 0.2 percent in November. The increase matched economist estimates.

The report showed sharp increases in sales by miscellaneous store retailers; sporting goods, hobby, musical instrument and book stores; and furniture and home furnishings stores.

Sales by gas stations and clothing and accessories stores also saw notable growth, while sales by building material and garden equipment and supplies dealers plunged. Sales by food services and drinking places also dipped.

The report said core retail sales, which exclude automobiles, gasoline, building materials and food services, climbed by 0.7 percent in December after rising by 0.4 percent in November.

"Retail sales in December were flattered by a price-related increase in gasoline station sales, but the details were generally encouraging, with a broad-based underlying control group rising at a strong pace," said Michael Pearce, Deputy Chief U.S. Economist at Oxford Economics.

He added, "That good news was partially offset by a decline in spending at restaurants and a drop in building material sales, reflecting the slow pace of home sales but also potentially the lower than normal temperatures early in the month."