Spending stronger in United States than headline data suggests

Clothing stores benefited from increased demand in the United States, but many restaurants failed to see their usual holiday surge, despite record holiday travel, writes KPMG US Chief Economist Diane Swonk.

Retail sales in the United States (US) rose 0.4 percent in December after rising an upwardly revised 0.8 percent in November. A surge in vehicle sales to their highest level since May 2021 drove those increases, along with sporting goods. Replacement demand due to the hurricanes in late September and early October buoyed those gains. Domestic light truck sales rose to the highest level since 2005, during the peak of the housing bubble. The consumer sentiment survey revealed that consumers...

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Authors: Diane Swonk

Published Date: 23 January 2025