US Retail Sales Take Another Plunge in December - Forex News by FX Leaders
US Retail Sales

US Retail Sales Take Another Plunge in December

Posted Friday, January 15, 2021 by
Skerdian Meta • 1 min read

The US economy rebounded strongly after the 2020 spring covid-19 lock-downs. Unlike in Europe which seems to be heading toward another recession, the US economy has been  holding up  well, as the economic data has shown. Although we are seeing some signs of weakness, as retail sales took a plunge in November and again last month. This is not the start of another recession, especially after stimulus package approved by the US government in December. But, it’s yet another negative number.

 

  • December advance retail sales -1.4% vs 0.0% expected
  • November retail sales were -1.1% (revised to -1.4%)
  • Core retail sales, excluding auto -1.4% vs. -0.2% estimated
  • Retail sales ex auto and gas -2.1% vs. -0.3% estimated
  • Retail sales control group -1.9% vs. +0.1% estimate
This is a poor report and the November numbers were revised significantly lower as well.
  • November retail sales ex auto revised to -1.3% from -1.1%
  • November retail sales ex auto and gas revised to -1.3% from -0.8%
  • November retail sales control group revised to -1.1% from -0.5%
So much for that strong Target same-store sales report. The market might forgive this because of the huge stimulus packages that are in the pipeline but it’s also a reminder that the economy is a long way from a self-sustaining recovery.
Areas that were particularly weak were ‘food & beverage’ -1.4% MoM, department stores -3.8%, non-store retailers (online) -5.8%, eating/drinking -4.5%, and general merchandise -1.2%. The only positive surprises were building materials +0.9% and clothing +2.4%
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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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