U.S. Retail Sales Slide Sharply as Inflation Weighs on Consumers

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Source: Bloomberg, via Yahoo! Finance

Bloomberg

U.S. Retail Sales Slide Sharply as Inflation Weighs on Consumers

Molly Smith
Fri, January 14, 2022, 8:32 AM · 1 min read

(Bloomberg) -- U.S. retail sales slumped in December by the most in 10 months, suggesting the fastest inflation in decades is taking a greater toll on consumers just as the nation confronts more coronavirus infections.

The value of overall purchases decreased 1.9%, after a revised 0.2% gain a month earlier, Commerce Department figures showed Friday. The figures aren’t adjusted for inflation, suggesting price-adjusted receipts were even weaker than the headline number. ... The median estimate in a Bloomberg survey called for a 0.1% drop in overall retail sales from the prior month.

The year-end slide in retail purchases sets up for a tepid handoff to the first quarter. Combined with the impact from the omicron variant, which is denting outlays for services such as travel and dining out, the figures help explain why economists project household spending to soften.

Furthermore, falling price-adjusted wages, dwindling savings and the end of the government’s pandemic-related financial programs suggest a more moderate pace of spending.

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Read more: https://finance.yahoo.com/news/u-retail-sales-slide-sharply-133208932.html

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Placeholder article at The Wall Street Journal.:

https://www.wsj.com/articles/us-economy-december-2021-retail-sales-11642109934

ECONOMY * U.S. ECONOMY

Retail Sales Seen Leveling Off as Record Holiday Shopping Season Ended

Many U.S. consumers heeded warnings about shipping delays, pushing a large share of period’s usual gains to earlier in year

By Gabriel T. Rubin
https://twitter.com/Rubinations
Jan. 14, 2022 5:30 am ET

Sales at U.S. retail stores, online vendors and restaurants are expected to have leveled off in December, ending a record holiday shopping season that included a resurgent Covid-19 pandemic, historically high inflation and supply-chain snags.

Economists surveyed by The Wall Street Journal estimate that retail sales fell a seasonally adjusted 0.1% in December from the prior month. Such a reading would mark a subdued end to record retail sales that started with a 1.8% gain in October.

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