Retail sales rose in December, a government report Tuesday showed, as strong auto sales outweighed relative weak gains at stores that typically benefit from holiday shopping.
The report showed a 0.5% increase from November in overall sales, much better than the 0.2% rise in sales forecast by economists surveyed by Briefing.com. Much of the gain came from a 1.8% jump in sales at auto dealers, as automakers capped the best year for U.S. car sales in five years with a strong month.
Sales at retailers other than auto dealers and parts stores rose only 0.3% as, despite the holiday shopping period, shoppers did not flock to other stores to buy gifts, according to the report. Department store sales were up only 0.3%, and down 1.7% from December sales in 2011.
Sales at electronics and appliance stores dropped 0.6% from November. The only traditional gift retailers enjoying better than average gains were clothing stores, where sales rose 1%, and the catchall category of books, sporting goods, hobbies and music, which enjoyed a 0.6% rise. Even online retailers, represented by the nonstore category in the report, posted only a 0.5% rise.
Numerous other reports have suggested it was a relatively modest holiday shopping season. Chain stores reported a 2.3% rise at stores open at least a year, according to sales tracker Thomson Reuters. MasterCard’s SpendingPulse report said retail sales leading up to Christmas rose a paltry 0.7% from last year.
Retail sales are important for the overall economy as spending by consumers is responsible for more than two-thirds of the overall U.S. economy.
