U.S. Retail Sales Remained Unchanged in December

LootboxPhobia · 2026-02-11T16:24:35+00:00

U.S. December retail sales unexpectedly flatlined, falling short of the expected 0.4% growth. Personal consumption significantly contributes to the economy, and analysts believe that a slowdown in the labor market may be the reason for the deceleration. Despite the weak data, economists remain optimistic about the future.

LootboxPhobia

2026-02-11 16:24:35

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Investing.com - U.S. retail sales in December unexpectedly remained flat compared to the previous month, with the slowdown in this key economic indicator exceeding expectations.

Retail sales growth for the last month of 2025 was 0.0%, while economists forecasted a 0.4% increase. In November, the data had increased by 0.6%.

Personal consumption is the main engine of the U.S. economy, accounting for more than two-thirds of total output. In the third quarter, it drove an annualized expansion of 4.4% in gross domestic product.

The so-called core retail sales—excluding autos, gasoline, building materials, and food services, which are most closely linked to the key consumer spending component of GDP—also remained essentially flat, with a 0.4% increase in November. Economists had expected a 0.3% growth.

Analysts believe that the slowdown in the U.S. labor market may be one of the reasons for the deceleration, despite Federal Reserve officials describing the employment situation as “steady” in January.

Although data released by the Commerce Department on Tuesday showed that the fourth quarter ended on a relatively subdued note, many economists emphasize that changes in tax laws and expectations of a slowdown in policy adjustments during President Trump’s second term provide a more optimistic outlook for the current year.

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