WASHINGTON — The U.S. December retail sales data were about as expected, showing enough strength to end Q4 on a good note despite downward revisions to prior months of sales, and a neutral reading for import prices did not alter the picture of imports not adding to price pressures.
December retail sales posted a 0.2% gain, ex autos grew 0.7%, and ex autos and gas rose 0.6%. This as-expected result assures a Q4 real GDP number in the 2%-3% range, even with the November and October sales levels and gains being revised lower.
Control group posted a 0.7% increase in December, a 0.2% rise in November, and a 0.6% hike in October. The quarterly pace of growth was about 1.6%.
December sales strength stemmed from a 2.0% rise in food, a 0.6% increase in health, a 1.8% jump in clothing, and nonstore at plus-1.4%. Cars and parts posted a 1.8% decline as new unit sales fell, furniture slid 0.4%, electronics dropped 2.5%, and building materials dipped 0.4% -- these were weak spots.
For all of 2013, sales were up 4.2%, not far off the pace of nominal GDP growth. Annual growth was 5.4% in 2012, 7.5% in 2011, and 5.5% in 2010, so the latest period slowed. Ex-autos showed a similar pattern at 3.2% in all of 2013, 4.9% in 2012, and 7.0% in 2011.
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