Americans stepped up their spending at retail stores and restaurants last month in a clear sign that consumers are still able and willing to shop, according to the Associated Press. Retail sales rose 0.4% in December from the previous month, the Commerce Department said Thursday, though down from November’s upwardly revised 0.8% gain.
The figures suggest that even as many Americans are struggling with higher prices and elevated interest rates, a low unemployment rate and rising wages are encouraging millions of consumers to spend, bolstering economic growth. Last Friday, the government reported that employers stepped up hiring in December, and the unemployment rate fell to a low 4.1%.
Retailers have generally reported healthy sales during the winter holiday shopping season. Much of last month’s increase in spending was driven by a 0.7% jump in car sales and a 2.3% spike in purchases of furniture. Sales at sporting goods stores jumped 2.6%, while clothing outlets reported a 1.5% increase.
The report is not adjusted for inflation, which picked up last month. The retail sales report mostly reflects sales of goods, where prices have been relatively muted. Sales rose 3.9% in December compared with a year ago, the government said, while goods prices have risen just 0.3%.
