U.S. retail sales increased in December as households bought motor vehicles and a range of other goods, pointing to strong demand in the economy and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year.

Retail sales gained 0.4% in December from November, slightly below projections for a 0.5% increase, according to FactSet.

Retail sales fell in December 2024, according to a first estimate. Retail sales volumes (quantity bought) are estimated to have fallen by 0.3% in December 2024, following a small rise of 0.1% in November 2024 (revised down from 0.2% in our last publication).