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.

Americans stepped up their spending at retail stores and restaurants last month in a clear sign that consumers are still able and willing to shop

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

U.S. retail sales increased solidly in December, pointing to strong demand in the economy and further reinforcing the Federal Reserve's cautious approach to cutting interest rates this year. Retail sales rose 0.