U.S. consumers cut back on retail spending during the December peak of the holiday season as the country confronted a surge in coronavirus infections.
The seasonally adjusted 0.7% month-over-month drop marked the third straight decline in the Commerce Department’s measure of spending at stores, vehicle dealerships, restaurants and online, after a stretch of growth last spring and summer.
Economists surveyed by The Wall Street Journal had forecast that retail sales decreased a seasonally adjusted 0.1% in December from a month earlier.
Spending declined in a number of key categories, including online purchases, bars and restaurants, electronics, groceries and department stores. Spending increased on home improvement, health and personal-care products, clothing and gasoline.
Excluding motor vehicles and gasoline, retail spending fell by 2.1% during the month.
