2024-01-17 14:19:30
(Washington) Retail sales in the United States ended the year on the rise, exceeding analysts’ expectations and closing a year 2023 marked by an increase in consumption in the country, which largely supported growth despite still inflation higher than the objectives of the Federal Reserve (Fed).
U.S. household purchases increased 0.6% in December compared to the previous month, according to data released Wednesday by the Commerce Department.
This is better than expected since analysts were counting on a more modest increase, of around 0.4%, according to the consensus published by briefing.com.
Over the year as a whole, retail sales increased by 5.6%, mainly driven by an increase close to or above 10% in online purchases (9.7%) and spending on bars and restaurants (11.1%).
Sales in physical stores also increased over the year, although at a more modest pace (+4.8%).
“Even though consumers continue to face obstacles […]the still solid labor market and the rise in real incomes as well as a relaxation of pressure on prices should make it possible to maintain spending in positive territory,” anticipated HFE chief economist Rubeela Farooqi in a note.
While the Fed must meet at the end of the month to determine the future direction of its key rates, “the slowdown in consumption, which nevertheless remains positive, and the deceleration of inflation should [lui] allow us to turn towards a reduction in its rates this year” added Mme Farooqi.
According to her, if inflation falls more than expected at the start of the year, “a rate cut from the March meeting cannot be ruled out”.
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