Retail sales saw a merry 0.6% boost in December

Solid holiday spending in December gave rise to the biggest monthly US retail sales bump in three months.

US retail sales were up 0.6% to $709.9 billion in December, the Commerce Department reported on Wednesday, a performance that beat economists’ expectations. The uptick was notably above the Consumer Price Index, which increased 0.3% in December, the Bureau of Labor Statistics reported last week.

Sales increased 5.6% from December 2022, and total sales for 2023 jumped 3.2% year over year. The holiday shopping season of October through December also got a 3.9% bump compared to a year ago.

Nine of the 13 categories covered in the report posted sales increases in December, with department stores delivering the highest monthly rise, 3%. Food and beverage stores got a slight monthly boost and 1.3% annual bump. Clothing stores scored a 1.5% monthly increase and 4.3% rise year over year. General merchandise stores, nonstore retailers (which includes e-commerce), and sporting goods stores also secured higher retail sales than the previous month.

Electronic and appliances stores had a small -0.3% slip from November, but a notable 10.7% YoY sales boost. Health and personal care stores’ sales dipped -1.4% month over month but also scored a 10.7% rise from December 2022. Furniture store sales dropped -1% month over month and -4.7% year over year. Food service and drinking places were flat for the month, but notched the largest year over year rise, 11.1%.

The National Retail Federation also reported on Wednesday that holiday retail sales (spanning November 1 to December 31) were up 3.8% year over year to a record $964.4 billion, per Census Bureau data.

“Although inflation has been the biggest concern for households, the price of goods eased notably and was helped by a healthy labor market, underscoring a successful holiday season for retailers,” NRF Chief Economist Jack Kleinhenz said in a statement.