US retail sales rise steadily; labor market tightening

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U.S. retail sales increased for a third straight month in December, with households buying a range of goods even as they cut back on purchases of ...

U.S. retail sales increased for a third straight month in December, with households buying a range of goods even as they cut back on purchases of motor vehicles, suggesting the economy maintained a moderate growth pace at the end of 2019.

The Commerce Department said retail sales increased 0.3per cent last month. Data for November was revised up to show retail sales gaining 0.3per cent instead of rising 0.2per cent as previously reported. Sales rose in December despite retailers such as Target Corp , Kohl's , J.C. Penney and Macy's reporting a decline in sales for the holiday period as foot traffic in malls dropped.

But with U.S. duties remaining in effect on US$360 billion of Chinese imports, about two thirds of the total, economists do not expect the so-called"Phase 1" deal to provide a boost to manufacturing, which is in recession. For now, consumers appear set to continue driving the economy, also thanks to house prices and a bullish stock market.

 

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