U.S. retail sales likely to have risen in December – TD Economics

Retail sales in the U.S. are expected to have increased in December. According to a TD Economics research report, retail sales are likely to have expanded 0.2 percent in December, a comparatively modest rise but in line with the fourth quarter real consumer spending near a strong 3 percent.

Sales of motor vehicles are expected to have come in slightly positive, consistent with the better than expected pickup in light weight auto and truck sales. Gasoline station receipts are expected to have made a neutral to negative contribution because of lower gasoline prices, while the cold snap in winter temperatures implies a hit to spending on building materials and at restaurants.

“We also expect a modest 0.1 percent rise in the control group (excluding auto, gasoline station, food services and building material sales), mostly reflecting a moderation following the unsustainable strength in the prior three months”, added TD Economics.

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