Retail sales unexpectedly stalled at the end of the year, raising questions about the strength of the American consumer.
In the past years, household consumption has been a vital engine of growth. Even as inflation squeezed budgets and confidence surveys turned gloomy, people kept spending.
That’s precisely why the latest data felt different. Not a collapse, but a clear break from the steady upward trend that defined most of the year.
Year-End Slowdown
The Commerce Department reported that retail sales were flat in December compared with November. Economists had expected a modest gain of about 0.4%, especially during the holiday shopping season. Instead, spending didn’t move at all.
November had delivered a solid 0.6% increase, while earlier…