Tue, 10 Feb 2026

Tue, 10 Feb 2026 US consumer spending slowed in December - Is it a warning for the economy?

Retail sales were unexpectedly flat in December as consumers pulled back, raising questions about a broader economic slowdown.
Retail sales in the US remained stagnant during December, contradicting expectations of a strong holiday season. According to data released by the Commerce Department, sales were flat compared to November, sparking concerns about an economic slowdown. The report marks a departure from previous months, where consumers continued to spend despite growing pessimism about the economy. Analysts point to several factors contributing to the weak sales, including a faltering labor market, persistent inflation, and cooling wage growth. Some consumer categories, particularly those exposed to tariffs, saw significant drops in spending. Furniture store sales fell 0.9% month-over-month, while clothing retailers experienced a 0.7% decline. Despite the disappointing numbers, economists caution that this may not be a sustained downturn. Consumer spending accounts for over two-thirds of US economic activity and is considered a key indicator of the country's overall health. The release of this data coincides with other upcoming reports, including labor market numbers and fourth-quarter GDP estimates, which could provide more insight into the state of the economy.
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