U.S. retail sales increased in December as households bought motor vehicles and a range of other goods, pointing to strong demand in the economy and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year.

Retail sales gained 0.4% in December from November, slightly below projections for a 0.5% increase, according to FactSet.

Retail sales rose at a solid pace in the final month of 2024, capping off a good holiday shopping season and suggesting the economy entered the new year with some momentum.

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.

Retail sales rose 0.4% M/M in December to $729.2B, lagging the +0.6% consensus and slowing from the +0.8% pace in November (revised from +0.7%), according to U.S. Census Bureau data released on Thursday.

December’s retail sales report could be a bright spot for the economy, rounding out a surprisingly solid holiday season. By all accounts, the sales report—due Thursday morning at 8:30 a.m. Eastern—should be a solid one.

U.S. retail sales increased solidly in December, pointing to strong demand in the economy and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year. Retail sales rose 0.