Americans continued to spend heavily as 2023 came to an end, driving retail sales higher by 0.6% in December, fueled by online purchases and spending at bars and restaurants, the Census Bureau reported on Wednesday.
Excluding auto sales and gasoline that tend to be volatile month to month, sales rose by 0.6% as well compared to forecasts of a 0.2% increase.
“Strong increase of 0.6% with the control group that feeds into the estimate of GDP up a robust 0.8%.
Outstanding credit card spending debt surpassed $1 trillion in the third quarter, although debt-to-income levels were below 10% and modest compared to the early 2000s.
Behind the shift is a belief that declining inflation and a cut in interest rates will help the economy grow modestly as the year unfolds.
Persons:
Joseph Brusuelas, Carl Marks, ”, Howard Meitiner
Organizations:
Census, RSM, Carl, Carl Marks Advisors, “ Retailers, Mortgage Bankers Association
Locations:
U.S