Shoppers were apparently not all that encouraged about the economy over the holiday season.
According to a report from the Commerce Department Tuesday, shoppers slowed down their spending in December (as compared to November).
The report surprised economists, who were looking for growth despite concerns about slowing job growth, uncertainty over U.S. tariff policies and other economic headwinds, The Associated Press reported. The Commerce Department also raised questions about shoppers’ ability to spend after they have remained resilient for months despite souring consumer confidence, economists said, the AP report said.
Retail sales were flat in December from November, when business was up 0.6%, according to the Commerce Department. Economists were expecting a 0.4% increase for December, according to the AP.
The report was delayed because of the 43-day government shutdown.
Sales in October fell 0.1%, rose 0.1% in September, but jumped 0.6% in July and August and 1% in June, according to the Commerce Department.
The retail sales figures, which are not adjusted for inflation, showed that many types of businesses posted declines including furniture and home furnishings stores and electronics and appliance retailers.
There were a few bright spots. Building materials and garden stores, which posted a solid sales increase. Gas stations and food and beverage stores saw small sales gains.
The report only offers a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered a dip of 0.1%. “Consumer spending has finally caught up with consumer sentiment, and not in a good way,” Chris Zaccarelli, chief investment officer for Northlight Asset Management in Charlotte, North Carolina, wrote in a report published Tuesday.
