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U.S. retail sales unexpectedly increased in December, pushing the economy to maintain a strong foundation. The U.S. Department of Commerce report caused economists to raise their fourth-quarter economic growth forecasts, further weakening market expectations for the Federal Reserve to cut interest rates in March.
The report showed retail sales rose 0.6%, beating economists’ expectations of 0.4%. Core retail sales, which exclude automobiles, gasoline, building materials and food services, rose 0.8%. The data supported strong core sales performance and showed the resilience of the U.S. economy.
Economists believe that if the labor market does not weaken, consumer spending will continue to grow in 2024. Spending is expected to be supported by government plans to expand tax credits.
(Source: inquirer Image source: freepik)
