Retail sales in December saw a notable increase, bolstered by the holiday shopping period and a calendar shift in Thanksgiving weekend. According to t
Retail sales in December saw a notable increase, bolstered by the holiday shopping period and a calendar shift in Thanksgiving weekend. According to the latest CNBC/NRF Retail Monitor, total retail sales (excluding automobiles and gasoline) rose 0.4% from November to December and 7.24% year-over-year.
This growth, which was widespread across most sectors, suggests that consumers are still spending despite economic challenges like inflation and rising interest rates. The figures also indicate that even as many Americans struggle with higher prices, a strong job market and wage growth are encouraging continued consumer spending, providing an essential boost to economic growth.
Summary of Key Data:
- Total Retail Sales: Up 0.4% month-over-month and 7.24% year-over-year
- Core Retail Sales (excluding restaurants, automobiles, and gasoline): Up 2.19% month-over-month and 8.41% year-over-year
- Top Performing Sectors:
- Clothing & Accessories: +14.47% year-over-year
- Electronics & Appliances: +10.23% year-over-year
- Sporting Goods: +7.43% year-over-year
- Furniture & Home Furnishings: +5.34% year-over-year
December Growth Driven by Holiday Shopping and Calendar Shifts
Retail sales in December were notably higher, driven by the final two days of Thanksgiving weekend falling in December. While this calendar shift helped boost sales figures, overall growth reflected a strong holiday shopping period. According to NRF President and CEO Matthew Shay, consumers continued to demonstrate enthusiasm for gift-giving with value-conscious spending. “Households are in good financial shape amid low unemployment, growing income, and continued deceleration of inflation for goods,” he said.
Strong Performance Across Multiple Retail Sectors
December saw growth across nearly all retail sectors. Key highlights include:
- Clothing and Accessories Stores: Up 14.47% year-over-year, reflecting strong consumer demand for holiday apparel.
- Electronics and Appliance Stores: Up 10.23% year-over-year, driven by consumer interest in gifts and home technology upgrades.
- Sporting Goods Stores: Up 7.43% year-over-year, as consumers purchased equipment and gear for recreational activities.
Other sectors, like furniture and home furnishings and general merchandise, also performed well, with notable gains of 5.34% and 9.77% year-over-year, respectively.
Retail Sales Growth Across Categories
On a month-to-month basis, December sales saw solid increases across most categories. Here’s a quick breakdown of key sectors:
- Online and Other Non-Store Sales: +4.49% month-over-month, +33.05% year-over-year
- Clothing and Accessories: +4.07% month-over-month, +14.47% year-over-year
- Electronics and Appliances: +3.25% month-over-month, +10.23% year-over-year
- General Merchandise: +3.24% month-over-month, +9.77% year-over-year
- Sporting Goods: +3.81% month-over-month, +7.43% year-over-year
Note: Building and garden supply stores saw a small decrease of 0.09% month-over-month, though they still posted a slight increase of 0.85% year-over-year.
Looking Ahead: Retail Trends for 2025
Looking toward 2025, the overall retail outlook remains positive, with solid growth expected across key sectors. However, the landscape remains mixed as higher-income households continue to drive spending, while more price-sensitive consumers have been pulling back due to inflationary pressures.
Inflation, which dropped sharply in 2023, has remained steady at around 2.7% through early 2025, still much higher than it was prior to the pandemic. However, the cooler core inflation figures have sparked optimism among economists and investors, with some hoping that the Federal Reserve will continue its series of interest rate cuts to further stimulate the economy. After three reductions in 2024, the Federal Reserve’s key rate now sits at about 4.3%.
Conclusion
The December retail sales report signals a resilient consumer base and continued spending growth despite inflationary challenges. With strong performance across key sectors, including clothing, sporting goods, electronics, and home goods, retailers are entering 2025 with a solid foundation. As inflation slows and income levels rise, key sectors are poised for sustained growth throughout the year.
Original article source: “December CNBC/NRF Retail Monitor Shows Strong Growth Boosted by Final Thanksgiving Weekend Days” published by National Retail Federation on [Jan. 13, 2025].
