US Retail Sales Unexpectedly Stall

US retail sales unexpectedly stalled in December 2025, following a 0.6% increase in November and falling short of forecasts for a 0.4% gain. Gains in sales at building material and garden equipment dealers (1.2%), sporting goods, hobby, musical instrument and book stores (0.4%), gasoline stations (0.3%), food and beverage stores (0.2%), and nonstore retailers (0.1%) were offset by declines at miscellaneous store retailers (-0.9%), furniture stores (-0.9%), clothing retailers (-0.7%), electronics and appliance stores (-0.4%), motor vehicle and parts dealers (-0.2%), health (-0.2%), food services and drinking places (-0.1%) and general merchandise stores (-0.1%). Excluding auto dealers and gasoline stations, sales were also flat. Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, edged down 0.1%, the first decline in three months.

US retail sales rose 0.6% mom in November 2025, the largest gain since July, rebounding from a revised 0.1% decline in October and exceeding forecasts of a 0.4% increase. The rise was driven by a rebound in auto sales, following a slowdown caused by the expiration of federal tax incentives on electric vehicles, and by strong holiday shopping. Biggest increases were seen in sales for sporting goods, musical instrument, & book stores (1.9%); miscellaneous store retailers (1.7%); gasoline stations (1.4%); building and garden suppliers (1.3%); motor vehicle dealers (1%); clothing stores (0.9%); food services & drinking places (0.6%); nonstore retailers (0.4%); health & personal care (0.3%); and food & beverage stores (0.1%). On the other hand, sales were flat at general merchandise and electronics stores and fell 0.1% at furniture stores. Meanwhile, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, rose 0.4%.

Retail sales in the US flattened in October from September 2025, following a downwardly revised 0.1% rise in the previous period, and below forecasts of a 0.1% rise. However, sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used to calculate GDP, soared 0.8%, rebounding from a 0.1% fall in September and much higher than expectations of 0.4%. Sales at motor vehicle and parts dealers were down 1.6% and other declines were also seen at building material & garden equipment dealers (-0.9%), gasoline stations (-0.8%), health & personal care stores (-0.6%), and food services & drinking places (-0.4%). Such declines were partially offset by rises in sales at furniture & home furnishing stores (2.3%), sporting goods, musical instrument, & book stores (1.9%), nonstore retailers (1.8%), miscellaneous store retailers (1.5%), clothing (0.9%), electronics stores (0.7%), general merchandise stores (0.5%) and food & beverages stores (0.3%).