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Retail sales in the United States fell for the third consecutive month in December, as the coronavirus pandemic led shoppers to nip pennies and stop by their homes.
Retailers and foodservice traders brought in just under $ 541 billion last month – the lowest level since July – after declines of 1.4% in November and 0.1% in October, a the US Census Bureau announced Friday.
The larger-than-expected 0.7% drop in December came amid an increase in COVID-19 infections and deaths that put pressure on retailers even in the height of the holiday shopping season. Economists expected sales to remain stable last month, according to Wrightson ICAP.
“COVID-19 lockdowns have sent consumers home where they are too worried about the prospects to spend a dime in stores and malls across the country,” said Chris Rupkey, chief financial economist at MUFG Union Bank.
Retail spending in December was 2.9% higher than the month a year earlier, but about 2.1% lower than the 2020 high of around $ 553 billion reached in September, according to September. federal data.
The slowdown came despite a surprisingly strong holiday season in which retailers posted sales of $ 789.4 billion, an 8.3% jump from 2019, according to the National Retail Federation. .
While consumers spent more on cars, clothing and personal care products in December, online and other non-store sales fell 5.8%, and electronics and appliance merchants reported 4 , 9% less, according to the federal government.
Restaurants and bars were down 4.5% while sales at food and beverage stores fell 1.4% – a possible sign of food insecurity among Americans struggling to survive. coping during the pandemic, according to Jonathan Silver, CEO of Affinity Solutions, a global group. information and marketing solutions firm.
“One of the biggest takeaways from today’s numbers is that the low-income groups who had kept the economy running until the fall began to show spending fatigue, likely related to a stalled stimulus and potential unemployment issues, ”Silver said.
December’s drop came as the U.S. economy shed jobs for the first time since April, as authorities imposed a new round of lockdown measures to combat the spread of COVID-19.
While the vaccines being rolled out across the country could help retailers recover in the months to come, “the pandemic has certainly changed the way we shop forever, so even when storefronts start opening again, trade electronics will remain an essential source of income. for retailers, ”said Marwan Forzley, managing director of payment technology company Veem.
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