US retail sales unexpectedly stalled in December, suggesting more tempered consumer spending as the year drew to a close.
The value of retail purchases, unadjusted for inflation, were little changed after a 0.6% gain in November, Commerce Department data showed Tuesday. Excluding auto dealers and gasoline stations, sales were also flat.
Eight out of 13 categories posted decreases, including declines at clothing stores and furniture outlets. Sales at auto dealers also fell. Meantime, outlays rose at building materials stores and sporting goods retailers.
The figures suggest a loss of consumer spending momentum at the end of the holiday-shopping season. While many economists expect tax refunds to underpin demand early this year, households remain frustrated about a high cost of living and worries persist about the job market.
The breadth of consumer spending is also a concern. Demand may be getting a boost from the wealth generated by stock-market gains, but there are signs discretionary spending is less robust for lower-income Americans relying primarily on more moderate wage growth.