Sales at U.S. retailers in December rose less than forecast, restrained by cheaper fuel prices and holiday discounting that helped hold down the value of goods sold.
The 0.1% gain followed a 0.4% advance in November that was more than initially reported, Commerce Department figures showed today. Economists forecast a 0.3% December rise, according to the median estimate in a Bloomberg News survey. Purchases excluding automobiles fell 0.2%, the first decline since May 2010.
Retailers like Macy’s Inc. resorted to discounting early in the holiday shopping season to ensure consumers shopped for gifts amid slower wage gains and lower property values. The figures show spending eased at the end of the fourth quarter, and may raise the odds purchases will cool early this year.
Retail sales were projected to accelerate after rising a previously reported 0.2% in November, according to the Bloomberg survey. The 75 economists’ estimates ranged from a decline of 0.2% to a gain of 0.9%.
Seven of 13 major categories showed gains last month, led by a 1.5% jump at car dealerships. Purchases rose 1.6% at building materials outlets, where favourable weather across the U.S. may have helped bolster sales. The average temperature in the contiguous 48 states was 35 degrees Fahrenheit (1.7 degrees Celsius), according to the National Climatic Data Center’s website.
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