As 2023 drew to a close, American consumers exhibited robust spending behavior, engaging in transactions across various sectors, including retail stores, auto dealerships, and online platforms. Analysts assert that this spending trend indicates the potential for consumers to remain key drivers of economic growth throughout 2024.
Economists, surveyed by The Wall Street Journal, project a 0.4% increase in retail sales for December when adjusted for seasonal variations. This uptick follows the unexpectedly strong 0.3% gain observed in November. Additional insights from credit-card spending data underscore the active participation of Americans in the holiday season, with notable foot traffic in shopping malls as individuals sought last-minute gifts and took advantage of year-end discounts.
A significant contributor to the December surge in sales was the automotive sector, with strong performances in both car and truck sales. When excluding auto transactions, analysts estimate a 0.2% increase in sales, mirroring the growth seen in the preceding month.
The impending release of the December retail sales report by the Commerce Department will provide a comprehensive overview, encompassing spending patterns across online platforms, brick-and-mortar stores, restaurants, and gas stations. This data offers valuable insights into consumer behavior and economic dynamics, setting the stage for a clearer understanding of the economic landscape in the early months of 2024.
