US retail sales miss forecast
US headline retail sales were unexpectedly flat (0.0% MoM) in December, missing economist forecasts for a 0.4% increase. Total sales for the month amounted to $735 billion, a sharp deceleration from the 0.6% growth recorded in November.
December 2026 Retail Sales Report Summary
The data, released by the Commerce Department on February 10,
2026, suggests consumer momentum stalled at the end of the holiday shopping season due to high living costs and a softening labor market.
Key Insights
Broad-Based Weakness: Declines were notable in furniture stores (-0.9%), miscellaneous retailers (-0.9%), and auto dealers (-0.2%).
Bright Spots: Spending remained resilient in building materials and garden supplies (+1.2%) and sporting goods (+0.4%).
Economic Impact: The miss triggered a decline in U.S. Treasury yields as traders increased bets on Federal Reserve interest rate cuts later in 2026.
Currency Reaction: The U.S. Dollar Index (DXY) pulled back following the report, testing new lows as the data signaled underlying consumer fatigue.
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