U.S. Retail Sales Unexpectedly Unchanged In December

(RTTNews) - The Commerce Department released a report on Tuesday showing retail sales in the U.S. were unexpectedly flat in the month of December.

The report said retail sales came in virtually unchanged in December after climbing by 0.6 percent in November. Economists had expected retail sales to rise by 0.4 percent.

"The December retail sales report shows that consumers paused their spending at the end of the holiday season after a strong spending spree in October and November," said Nationwide Chief Economist Kathy Bostjancic.

She added, "The stagnant retail sales in December provides a soft hand-off to Q1 consumer spending, but we look for a surge in tax refunds, estimated to be $50 billion higher than last year, and the still strong wealth effect will buoy consumer spending in Q1 and support solid GDP growth."

Excluding a 0.2 percent dip in sales by motor vehicle and parts dealers, retail sales were still virtually unchanged in December after increasing by 0.4 percent in November. Ex-auto sales were expected to grow by 0.3 percent.

Retail sales came in unchanged even as sales by building material and garden equipment and supplies dealers shot up by 1.2 percent for the second straight month.

The jump was offset by notable decreases in sales by furniture and home furnishings stores, miscellaneous store retailers and clothing and accessories stores.

Core retail sales, which exclude automobiles, gasoline, building materials and food services, edged down by 0.1 percent in December after rising by 0.2 percent in November.