Americans tapered off from shopping toward the end of the holiday season, while lower gasoline prices also cut into overall retail sales in December.
The Commerce Department said Friday that retail sales dipped a seasonally adjusted 0.1% last month to $448.1 billion after having climbed a solid 0.4% in November, the Associated Press reports.
The report shows consumer tastes shifting toward restaurants and online shopping. The extra savings from falling gas costs have yet to boost spending much in other retail categories.
Sales fell in December at clothing, electronics outlets and general merchandise stores. But those declines were largely offset by spending at restaurants, online retailers, furnishers and sporting goods and building supply stores.
The main drag on retail sales remains lower prices at the pump. Sales at gas stations, which aren’t adjusted for changes in price, plunged 1.1% in December. Gas prices have continued to fall with the start of 2016, with oil hovering around $30 a barrel. Many analysts expect the price to decline further.
Cheap gas has freed up cash in many household budgets. The average price of gasoline fell below $2 a gallon this week for the first time since March 2009, according to the Energy Department. The average household has an additional $660 to spend this year because of cheaper gas, according to the government.
This appears to have provided a modest boost to retailers. Excluding gas, retail sales were unchanged last month and advanced 3.9% from a year ago. Much of the gain has been concentrated at auto dealers and restaurants.
The Associated Press has the full story.
