Retail Sales Surge Highlights Robust U.S. Economy

U.S. retail sales rose in December, driven by strong consumer demand for vehicles and other goods. The robust sales figures suggest the economy remains strong, despite underlying inflation slowing. The Federal Reserve is unlikely to cut interest rates soon, maintaining caution amid President-elect Trump's tariff plans.

In a display of economic strength, U.S. retail sales climbed in December, driven by rising demand for motor vehicles and other goods, according to a Commerce Department report released Thursday. The data has prompted some economists to revise their growth forecasts for the fourth quarter upwards.

Despite a slowdown in underlying inflation, overall consumer prices saw the largest increase in nine months, supported by a robust labor market and growing wages. Consequently, the Federal Reserve remains cautious about cutting interest rates, as noted by Carl Weinberg, chief economist at High Frequency Economics.

Notable gains were observed in sales at auto dealerships and furniture stores, while online store sales grew modestly. The retail sector's performance underscores ongoing consumer confidence in the economy, even as President-elect Trump's proposed tariffs loom, potentially impacting consumer prices in the near future.

(With inputs from agencies.)