- ORIGINAL NEWS
Consumer spending rises in December to end solid holiday season, CNBC/NRF Retail Monitor shows
- SUMMARY
Holiday shopping had a solid end, but the true state of consumer spending is masked by deflation.
Retail sales rose 0.4% in December (excluding autos and gas) but below the average of 0.6%.
Deflation may be affecting sales as core retail increased by 0.2% in December and this data isn’t reflected in sales reports.
Some consumer spending categories saw gains, such as general merchandise stores (0.9%) and nonstore retailers (2.6%), while housing-related categories faced losses (electronics, appliances, building and garden supplies, furniture, and home furnishings).
The rise of online shopping continues with a 2.6% increase in nonstore retailers.
Two key holiday months saw good growth, but October and January may have had stronger gains, indicating a longer shopping period.
The CNBC/NRF Retail Monitor is a collaborative effort between CNBC and the National Retail Federation, using actual consumer purchases rather than survey data.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Retailers chalked up solid gains in the final month to wrap up the holiday season, according to the CNBC/NRF Retail Monitor for December.”
“Traditional holiday-related retail categories did better, including a 0.9% gain in general merchandise stores and a 2.6% increase in nonstore retailers, which incorporates internet sales.”
Negative
“However, the data also shows the true state of consumer spending is now clouded by a new factor: deflation.”
“Spending was clearly hampered by the slowdown in the housing industry.”