U.S. Economy Losing Momentum As Retail Sales Post Biggest Drop In 12 Months
U.S. retail sales fell by the most in a year in December, pulled down by declines in purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.
U.S. retail sales fell by the most in a year in December, pulled down by declines in purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.
Summary:
Retail sales fall 1.1% in December; November sales lowered
Core retail sales drop 0.7%; November sales unrevised
Manufacturing production tumbles 1.3%; November output cut
Producer prices fall 0.5%; up 6.2% YoY
The second straight monthly decrease in retail sales, which are mostly goods, is undercutting production at factories. Manufacturing output recorded its biggest drop in nearly two years in December, while monthly producer prices also tumbled, other data showed on Wednesday.
The widespread signs of weakening demand and subsiding inflation are likely to encourage the Federal Reserve to further scale back the pace of its rate increases next month, but not pause its monetary policy tightening anytime soon as the labor market remains tight. The U.S. central bank is engaged in its fastest rate hiking cycle since the 1980s.
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