U.S. retail sales rise sequentially in December, bit below expectations

Retail sales in the U.S. increased sequentially in December, coming in slightly below consensus expectations. The headline figure was up 0.4 percent sequentially, as compared with consensus expectations of 0.5 percent. However, the surprise was the strong upward revisions to prior months’ data. The prior month’s data was upwardly revised, especially for the core categories. The October data was also revised up. Overall, it implies that personal consumption might have grown stronger than expected earlier in the fourth quarter.

Delving into details, sales of motor vehicles and parts rebounded 0.2 percent sequentially, in line with manufacturers’ reports on auto sales released earlier in the month, which indicated a modest rebound in sales. Stripping autos, retail sales were up 0.4 percent sequentially. In the meantime, sales in most other categories saw positive growth, led by building materials, non-store retailers and food and beverages. The exceptions were department store sales and sales in the miscellaneous category. The retail sales control group, which excludes the effect of volatile components also rose 0.3 percent.

“Taken together, our Q4 GDP tracker was revised higher by four-tenths to 3.0 percent q/q saar”, stated Barclays in a research report.

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