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

Retail sales rose 0.4% in December from the previous month, the Commerce Department said Thursday, though down from November’s upwardly revised 0.8% boost.

The figures recommend that even as many Americans are struggling with higher prices and elevated profit rates, a low unemployment rate and rising wages are encouraging millions of consumers to spend, bolstering market advancement. Last Friday the government reported that employers stepped up hiring in December and the unemployment rate fell to a low 4.1%.

Much of last month’s boost in spending was driven by a 0.7% jump in car sales, and a 2.3% spike in purchases of furniture. The update isn’t adjusted for worth increases, though the sales gains mostly reflects greater buying.

After dropping precipitously in 2023, worth rise has been stuck at about 2.7% in recent months, and prices are still much higher than four years ago. Still, on Wednesday the Labor Department said that core prices — excluding the volatile food and vigor categories — rose more slowly last month, as clothing prices barely increases and apartment rental costs climbed at a slower pace.

The cooler core worth rise figures renewed hopes among economists and Wall Street investors that the Federal savings will cut its key rate further this year, after three reductions last year reduced by a percentage point to about 4.3%.



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