NEW YORK (AP) — Americans stepped up their spending even more than expected in December, closing out the holiday season and the year on an upbeat tone.
Retail sales rose 0.6% in December compared with November's 0.3% increase, according to the Commerce Department.
Sales at stores selling general merchandise rose 1.3%, while sellers of clothing and accessories saw business up 1.5%.
While consumers continue to face higher borrowing costs, tighter credit conditions and higher prices, spending is being fueled by a strong job market and rising wages.
Higher energy and housing prices boosted overall U.S. inflation in December, a sign that the Federal Reserve’s drive to slow inflation to its 2% target will likely remain a bumpy one.
Persons:
Paul Wiseman
Organizations:
Commerce Department, Federal
Locations:
Washington