U.S. Retail Sales Edge Down 0.1% In December
15 January 2016 - 8:07PM
RTTF2
Retail sales in the U.S. saw a modest decrease in the month of
December, according to a report released by the Commerce Department
on Friday.
The report said retail sales edged down by 0.1 percent in
December following an upwardly revised 0.4 percent increase in
November.
Economists had expected sales to come in unchanged compared to
the 0.2 percent uptick originally reported for the previous
month.
The modest drop in retail sales was partly due to a continued
decrease in sales by gas stations, which slumped by 1.1 percent in
December after tumbling by 1.3 percent in November. The continued
decline reflected lower gas prices.
The report also showed a steep drop in sales by miscellaneous
store retailers as well as notable decreases in sales by general
merchandise stores and clothing and accessories stores.
Meanwhile, the Commerce Department said sales by motor vehicle
and parts dealers were unchanged in December after climbing by 0.5
percent in November.
Subsequently, excluding auto sales, retail sales still dipped by
0.1 percent in December after climbing by 0.3 percent in November.
Ex-auto sales had been expected to rise by 0.2 percent.
Closely watched core retail sales, which exclude autos,
gasoline, and building materials, also fell by 0.3 percent in
December following a 0.5 percent increase in the previous
month.
Rob Carnell, Chief International Economist at ING Commercial
Banking, said "There is no single explanation for the
weakness."
"Warmer than usual weather may have reduced spending on seasonal
clothing, but doesn't explain why auto sales were so much at odds
with other auto sales data which are very strong," he added.
"Falling electronics sales are also hard to explain, as is food,
miscellaneous sales, and general merchandise."
Nonetheless, the Commerce Department said total retail sales in
December were up by 2.2 percent compared to the same month a year
ago, reflecting an acceleration from the 1.6 percent annual growth
seen in November.
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