US Retail Sales Flat in December, Below Forecast

US retail sales remained unchanged in December, defying economists' expectations for growth and signaling a slowdown in consumer spending at the end of the year. The Commerce Department reported the flat reading on Tuesday, a sharp contrast to November's 0.6 percent increase and well below the 0.4 percent gain forecasted in a FactSet poll of economists. The figures, adjusted for seasonal variations but not inflation, were delayed by more than a month due to the previous year's government shutdown.

Spending declined in most tracked categories, with furniture and home furnishings stores seeing the largest drop at 0.9 percent, followed by miscellaneous stores at 0.9 percent. Electronics and appliance retailers reported a 0.4 percent decrease, while clothing and accessories sales fell 0.7 percent. Restaurants, the only services category included, edged down 0.1 percent. Gains were limited, with home improvement stores leading at 1.2 percent higher and spending on building materials and food and beverages also rising.

A core measure of retail sales, excluding automobiles, gasoline, building materials and food services, fell 0.1 percent in December after a downwardly revised 0.2...