Retail Sales Flat in December, Lower Than Expected

Core Insights - U.S. retail sales were flat in December 2025, unchanged from the previous month and below the expected growth of 0.4% [1] - Total retail sales for December 2025 were $735.0 billion, reflecting a year-over-year increase of 2.4%, the smallest annual growth since September 2024 [1] - Core retail sales, excluding automobiles, were also flat in December, with a year-over-year increase of 3.3%, marking the smallest annual growth since November 2024 [1] Retail Sales Performance - Retail trade sales remained virtually unchanged from November 2025, with a year-over-year increase of 2.1% [1] - Nonstore retailers experienced a significant year-over-year increase of 5.3%, while food service and drinking places saw a 4.7% increase compared to December 2024 [1] - The period from October 2025 to December 2025 showed total sales up 3.0% compared to the same period a year ago [1] Control Purchases Analysis - Retail sales control purchases, which exclude motor vehicles, gasoline, building materials, and food services, fell by 0.1% in December, down from November's 0.2% increase [1] - Year-over-year control purchases increased by 3.5%, the smallest annual growth since August 2024 [1] - The control purchases series is considered a more consistent and reliable economic indicator compared to headline retail sales [1]