US retail sales accelerated by a larger-than-expected 0.9 per cent in December and were even stronger than anticipated when autos were stripped out, a government report showed today.
The December gain in retail sales, which covers the crucial holiday shopping season, was the largest since July. Analysts were expecting a 0.6 per cent rise.
A 1 per cent jump in sales aside from autos, considered a more reliable indicator of core household spending, was well ahead of the 0.5 per cent gain analysts were expecting and it was the sharpest climb since January of last year.
However, November's sales data were revised down to a 0.6 per cent gain overall from a previously reported 1 per cent increase and to a 0.7 gain from an earlier reported 1.1 per cent rise when autos were excluded.
US Treasury debt prices fell and the dollar gained after the data, which some analysts said pointed to stronger economic growth in the fourth quarter than previously thought.
Some analysts had said an earlier-than-usual Thanksgiving holiday in November may have drawn some sales strength away from December, and that the growing prevalence of gift cards could push some of December's normal holiday spending into January, a further suggestion of consumer spending resilience.
Sales for all of 2006 advanced by 6 per cent from 2005, the smallest year-over-year gain since a 4.3 per cent increase in 2003, the Commerce Department said.