Thursday, January 15, 2015
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Customers shop at Nordstrom Rack in Schaumburg, Ill. Americans cut back last month after ramping up spending in November, perplexing analysts who had expected strong retail sales in December in light of rising job growth and sinking gas prices.
Associated Press
WASHINGTON
With the job market on a roll and gas prices falling, consumers are spending away, right?
Not quite. Americans actually cut back last month after ramping up spending in November, perplexing analysts who had expected strong retail sales in December in light of rising job growth and sinking gas prices.
Sales fell a seasonally adjusted 0.9 percent from November to December, the Commerce Department said Wednesday. It was the largest drop since last January. Much of the decline didn’t actually reflect a diminished consumer appetite: Americans spent less at the gas station because of those lower fuel prices — a decline that’s included in the retail-sales figures.
That said, sales in most other categories lost ground, too.
Yet analysts see no need to worry yet. Most think consumers will bounce back in coming months on the back of healthy job gains and rising confidence. Economists say many temporary factors likely held back sales in December.
Excluding the volatile categories of gas, autos, building materials and restaurants, sales dropped 0.4 percent after rising 0.6 percent in November. Online and mail-order sales fell 0.3 percent, the most since April.
November’s strong sales might have caused shoppers to pull back last month, economists said. Before slipping in December, for example, auto sales had soared in November.