U.S. Retail Sales Slide Sharply as Inflation Weighs on Consumers -Breaking
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(Bloomberg). — U.S. retail sales fell by their largest in 10 months in December. This suggests that the country is experiencing more coronavirus-related infections and the inflation rate has risen faster than ever before.
Commerce Department data showed that the value of all purchases fell 1.9% after an initial 0.2% increase a month ago. The figures aren’t adjusted for inflation, suggesting price-adjusted receipts were even weaker than the headline number.
According to a Bloomberg Survey, the median estimate was for 0.1% decrease in total retail sales in December compared with previous month.
A slowdown in retail sales at the end of last year will lead to a weak transition into the first quarter. These figures, combined with the impact of the omicron variation, are helping to explain why economists expect household spending will soften.
Furthermore, falling price-adjusted wages, dwindling savings and the end of the government’s pandemic-related financial programs suggest a more moderate pace of spending.
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