US Retail Sales Increase 0.4% in December

U.S. retail sales rose by 0.4% in December, reaching $729.2 billion, a figure that fell short of expectations and was lower than the previous month's 0.8% increase. Sales excluding autos also increased by 0.4%, while core retail sales, which exclude food services, auto dealers, building materials, and gasoline, saw a more robust rise of 0.7%. Despite the underwhelming numbers, the overall sales for the October to December period were up 3.7% compared to the same timeframe a year earlier. Strong consumer demand was evident, supported by solid wage growth and a resilient labor market, although inflation continues to put pressure on household budgets. Economists suggest that the Federal Reserve may maintain a cautious approach to interest rate cuts in light of these figures. The retail market's performance indicates a mixed outlook as consumers navigate a landscape of rising prices and economic uncertainty.