Retail sales were hotter than expected to end 2023, according to the latest data from the Census Bureau.
- M-O-M: Advance estimates of U.S. retail and food services sales rose to $709.9 billion in December, up 0.6% from the previous month and the fourth largest jump all year.
- Y-O-Y: Retail sales are now up 5.6% when compared to the same time last year.
Beat The Street. Economists projected that retail sales would only rise 0.4% in December.
It’s Called Fashion. Department stores reported the biggest jump with sales up 3.0% in December followed by online retailers and clothing stores which both jumped 1.5%.
- On the flip side, health & personal care stores saw the biggest drop in December with a 1.4% drop followed by gas stations (-1.3%) and furniture stores (-1.0%).
Drink & Be Merry. Bars & restaurants ended 2023 with sales up 11.1% compared to the same time last year. Not far behind where health & personal care stores and electronic stores both up 10.7% and auto parts & dealers up 10.3%.
- On the flip side, gas stations ended the year with sales down 6.6% followed by furniture stores (-4.7%) and department stores (-2.7%).
BOTTOM LINE: In December, consumer prices rose 0.3% from November with the annual rate up 3.4%. Retail sales are up 0.6% and 5.6%, respectively. Consumers are no longer just keeping up with inflation, they are surpassing it. This means despite consumer sentiment being down consumers are still spending with some optimism.