U.S. Outlook: Retail sales shine in robust holiday shopping season

Posted By Scott Anderson In Economic Outlook | No Comments

December retail sales came in at a robust pace, and November sales were revised higher, cementing a decent increase in real consumer spending for the fourth quarter.

A woman looking at her phone, while shopping [1]From a year ago, December retail sales increased 5.4%.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Jan. 12.

Key observations:
  • Over the past three months, retail sales have increased at an accelerated 11.3% annualized pace.
  • We are revising our Q4 real GDP estimate up to a 2.7% annualized pace.
  • Building material and furniture store sales were almost 10% above year-ago levels, largely due to hurricane rebuilding and a robust housing market.
  • The increase in core consumer inflation helped lift the year-on-year increase in core CPI to 1.8% from 1.7%. These are marginally better numbers on consumer inflation, but are they as strong as the FOMC would like to see at this stage of the economic cycle?

Read my full report. [2]

Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2018/01/12/u-s-outlook-retail-sales-shine-robust-holiday-shopping-season/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2017/11/black_friday_shopper_crop.jpg

[2] Read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2018/01/BankoftheWest_USOutlook_01_12_18.pdf

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