US retail sales sank again in December as surging COVID-19 cases slammed holiday spending

US retail sales sank again in December as surging COVID-19 cases slammed holiday spending

US retail sales declined 0.7% in December, landing below the consensus economist forecast for unchanged spending.

The reading marks a third straight month of contraction following November's 1.4% drop and a mild decline in October.

The data suggests strong online sales through the holiday season failed to offset COVID-19 lockdowns and surging case counts.

Still, the $900 billion stimulus plan signed by President Trump late last month and a new $1.9 trillion plan pushed by President-elect Joe Biden could boost retail spending throughout 2021.

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Spending at US retailers contracted through the last month of 2020 as economic restrictions offset holiday-season sales.

US retail sales contracted 0.7% in December, according to Census Bureau data released Friday. Economists surveyed by Bloomberg expected sales to hold steady from the month prior. While spending fell from the prior month, it still grew 2.9% from December 2019.

November's reading was revised lower to a 1.4% decline.

Retail sales growth has stumbled after climbing for five consecutive months through September. The $2.2 trillion stimulus bill passed in March bolstered household incomes and buoyed spending through the start of the pandemic. But months of deliberation over a follow-up bill saw the CARES Act's relief programs expire