WASHINGTON — The value of retail sales rose 0.4% in December, as expected by analysts, and were up 0.4% excluding motor vehicle sales. There were upward revisions to sales in both October and November.
Excluding autos, gasoline, and building materials, "control" retail sales were up 0.4%. And for good measure, excluding food services as well as those three measures, retail sales were up 0.3%, suggesting underlying sales growth remained solid, though at a slower pace than in November.
December motor vehicle sales posted a 0.2% rebound after a 1.0% decline in the previous month, a smaller rise than some analysts had predicted when forecasting above the 0.4% median estimate. At the same time, building materials sales rose 1.2% in December, continuing their upward trend.
Gasoline store sales were flat in December following a 3.0% jump in November and food services and drinking places sales were up 0.7% after a 0.5% November gain.
The retail sales data suggest that fourth quarter consumption is well ahead of the third quarter average, a positive for fourth quarter PCE.
Incorporating the revisions to October and November, fourth quarter sales were up 11.3% at an annual rate, while sales excluding motor vehicles were up 10.6% from the third quarter. Sales excluding autos, gas and building materials were up 8.1% and sales also excluding food services were up 8.9%.
Total retail sales for 2017 were $5.756 trillion, up 4.2% from 2016. Sales excluding motor vehicles were $4.570 trillion, up 4.3% from a year earlier. Both were well above their rates in 2016.
