December retail sales fall short of expectations


Shoppers walk through a retail store in Herald Square on Black Friday in New York City on Nov. 29, 2024. The 2025 holiday shopping season was slower than expected with consumers spending little more in December than they did in November, the U.S. Commerce Department reported Tuesday. File Photo by John Angelillo/UPI | License Photo
The 2025 holiday shopping season was slower than expected with consumers spending little more in December than they did in November, the U.S. Commerce Department reported Tuesday.
Advanced monthly estimates for retail and food service sales were virtually unchanged, the report said. These estimates may be revised later, though monthly estimates for October and November remain unrevised.
The advanced monthly estimates are seasonally adjusted but are not adjusted for inflation.
Retail trade sales also remained “virtually unchanged,” in December over November but increased by about 2.1% over 2025. For the period of October through December, sales were up 3% over 2025.
Several categories of retailers saw sales decline for the month. Electronics and appliance sales decreased by about 0.4%. Clothing and accessories fell 0.7%. Miscellaneous retail and furniture stores experienced the greatest decline, down about 0.9%.
On an annual basis, sales increased about 2.4% over December 2024. While sales increased, they did not keep up with inflation, indicated by a 2.6% increase in the Consumer Price Index for December.
Despite a slow sales month, the fourth quarter of 2025’s gross domestic product increased by 4.2% over 2024, based on economic data from the Atlanta Federal Reserve. That data may yet be revised.
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