U.S. retail sales rose a slightly smaller-than-expected 0.7 percent in December and were up just 0.2 percent when auto purchases were excluded, government data showed on Friday, but November’s sales were revised sharply higher.
For all of 2005, retail sales grew 7.3 percent, just beneath the 7.6 percent gain in 2004. Excluding autos, sales for the year were up 8.3 percent, the Commerce Department said.
Wall Street analysts had forecast retail sales to jump 0.9 percent last month, helped by sales of autos and electronic goods ahead of the holidays. Sales excluding autos had been expected to rise 0.4 percent.
The lower-than-expected increases in December were offset by a strong upward revision to November data, however. November sales were revised to a 0.8 percent gain from an initially reported 0.3 percent advance.
Car sales, lifted by hefty incentives, jumped 2.6 percent following a 5.7 percent surge in November. November’s increase was first reported as a 2.6 percent gain.
Retail sales help to guide expectations for overall consumer spending in the economy, which some expect to dip to 0.5 percent growth in the fourth quarter from a 4.1 percent rise in the previous three months.
U.S. retailers had already reported a mixed Christmas shopping season, with earnings somewhat offset by heavy discounting at the end of the holiday period.
Demand for goods at electronics and appliance stores fell 0.1 percent in December, while general merchandise posted a 0.3 percent dip and sales of clothes and clothing accessories were unchanged.
Sales at gasoline stations, which have been highly volatile all year because of swings in the price of petroleum, were up 0.9 percent after slumping 6.1 percent the previous month.