- England captain Stokes in line for second Pakistan Test return
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- Israel widens Lebanon strikes as troops fight Hezbollah along border
- Bowlers' graveyards: Pakistan's placid pitches under fresh fire
- 'Little Gregory' murder haunts France 40 years on
- Vietnam, China to expand rail links, cross-border payments
- Americans get their belief back as Pochettino makes his mark
- Vietnam, China to boost economic, defence cooperation
- Winning start for Pochettino's American adventure
- Tariffs, tax cuts, energy: What is in Trump's economic plan?
- Amazon wants to be everything to everyone
- US firms brace for more tariffs as election approaches
- Winning start for Poch's American adventure
- Morocco's tribeswomen see facial tattoo tradition fade
- Centre-left set to win as pro-Ukraine Lithuania votes
- Colombia guerilla group urges delegations not to attend COP16 in Cali
- Pakistan frets over security ahead of SCO summit
- Ronaldo scores 133rd Portugal goal in Nations League win over Poland
- 40 nations contributing to UN Lebanon peacekeeping force condemn 'attacks'
- Eight dead as heavy rain thrashes Brazil after long drought
- Jewish school in Canada hit by gunfire for second time
- Morocco crush Central African Republic, Guirassy scores hat-trick
- Dupont scores quickfire hat-trick on Toulouse Top 14 return
- Ronaldo scores in Portugal's Nations League win as Spain sink Denmark
- Interim boss Carsley has not applied for England job
- Mets hurler Senga ready to take on Dodgers in game one of NL Championship Series
- Ronaldo on target again as Portugal defeat Poland in Nations League
- Guardians rip Tigers 7-3 to advance in MLB playoffs
- AFP, BBC win top French war reporting awards
- Carsley goes back to basics as humbled England face Finland
- Alex Salmond: the man who took Scotland to the brink of independence
- Scotland's former leader Alex Salmond dies aged 69: party
- UN warns of catastrophe as Israel fights a two-front war
- Croatia extend Scotland's losing streak
- South Africa, New Zealand boost T20 World Cup semi-final hopes
- 'Very challenging': Israel faces Hezbollah in tricky terrain
- Farrell begins to feel at home as Racing 92 beat Toulon
- South Africa boost T20 World Cup semi-final hopes with Bangladesh win
- Samson ton powers India to T20 series sweep after record total
- Djokovic to face Sinner in Shanghai final with 100th title in sight
- UN peacekeepers to remain in Lebanon: spokesman
- Pro-Conquest film fuels debate in Mexico over colonial legacy
- Samson ton powers India to record 297-6 in Bangladesh T20
- New Zealand enjoy perfect start to America's Cup defence over Britain
- Pogacar emulates icon Coppi with fourth straight Il Lombardia triumph
- UN warns against 'catastrophic' regional conflict
- New Zealand crush Ineos Britannia in America's Cup opener
- Djokovic to face Sinner in blockbuster Shanghai Masters final
- With medical report Harris seeks to play health card against Trump
US retail sales beat expectations in December to wrap solid year
US retail sales accelerated more than anticipated in December, closing out a year marked by resilient consumption, government data showed on Wednesday.
Sales picked up in the final month of 2023 by 0.6 percent to $709.9 billion, up from a 0.3 percent bump in November, said the Commerce Department in its latest report.
For the full year of 2023, total sales were up 3.2 percent from 2022, the report added.
The strong showing comes even though consumer demand was expected to weaken in the face of higher interest rates. In part, a resilient job market has helped to support spending over the past year.
The Federal Reserve rapidly lifted the benchmark lending rate since early 2022 and has in recent months held rates steady at a high level, in order to lower inflation sustainably.
While this is typically expected to hit consumption as borrowing becomes more expensive, retail sales has generally held up.
Compared with December 2022, retail sales last month was 5.6 percent higher, according to the latest data.
Among the different sectors, sales at motor vehicles and parts dealers rose 1.1 percent from November last month, and those at department stores jumped 3.0 percent, said the Commerce Department.
But sales at gasoline stations were down by 1.3 percent between November and December 2023, while those at health and personal care stores slipped 1.4 percent.
- Slowing further -
"The stronger gain in retail sales in December was driven by robust sales at department stores and online retailers, which rounded out a solid holiday shopping season," said economist Michael Pearce at Oxford Economics in a note.
But he noted that spending at restaurants and bars is "flatlining."
"We expect spending will slow a little further over 2024 as employment growth weakens and household savings rebound," he added.
Analysts have warned that advance retail sales estimates can be revised significantly.
And in the bigger picture, "the trends elsewhere are broadly consistent with slowing, but still robust, spending growth," said economist Kieran Clancy of Pantheon Macroeconomics.
While the 1.1 percent rise in auto and parts sales is slightly above the underlying trend, Clancy added that "the broader downshift in spending growth remains firmly intact," with higher interest rates likely to weigh on purchases ahead.
With inflation cooling while the labor market and spending remains intact, economists note that the US economy is likely to achieve a so-called "soft landing" -- in which price increases ease without a damaging downturn.
As the Fed mulls rate cuts this year, optimism is growing that the country would be able to do so.
A.Mahlangu--AMWN