US Retail Sales Stall in December 2025, Raising Concerns Over Consumer Momentum

Washington | EcoPulse24

US retail sales unexpectedly stalled in December 2025, posting zero monthly growth (0.0%) - a sharp contrast to a 0.6% rise in November and below market forecasts of a 0.4% increase.

Data revealed sectoral divergence: building materials and garden equipment climbed 1.2%, sporting goods, hobbies, and books rose 0.4%, gas stations 0.3%, grocery and beverage stores 0.2%, and non-store (online) retail 0.1%. Conversely, major consumer categories faced pressure - department stores and furniture fell 0.9% each, apparel dropped 0.7%, electronics and appliances 0.4%, and autos and parts 0.2%. Health services, restaurants, and general merchandise stores also posted slight declines.

Excluding autos and gas stations, sales remained flat. The core measure for GDP - excluding food services, autos, building materials, and fuel - edged down 0.1%, its first decline in three months.

EcoPulse24 Analysis

December's figures reflect a slowdown in US consumer momentum at the end of 2025. While demand persists in housing-related and essential categories, discretionary spending on clothing, furniture, and electronics shows clear caution. This shift suggests consumers are prioritizing essentials amid ongoing financial and borrowing cost pressures.

The slight contraction in the core sales measure signals a short-term negative outlook for GDP growth in the next quarter, potentially prompting a more cautious monetary policy stance if weakness continues. However, the outlook remains tied to developments in the labor market and prices; any real wage improvement could revive consumer spending in the coming months.