December retail sales fall short of expectations

Consumers spent little more in December than November, Commerce Department reports

Published on Feb. 10, 2026

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Retail sales in 2025 ended on a down note with a report from the U.S. Commerce Department showing consumer activity did not pick up in December as expected. Advanced monthly estimates for retail and food service sales were virtually unchanged from November, though sales increased about 2.1% over 2025 for the full year.

Why it matters

The slower-than-expected holiday shopping season raises concerns about the strength of the overall economy, as consumer spending makes up a large portion of GDP. While the fourth quarter of 2025 saw GDP increase 4.2% over 2024, the retail sales data suggests that growth may have been uneven or driven by other factors beyond just consumer activity.

The details

Several categories of retailers saw sales decline in December, including electronics and appliances (-0.4%), clothing and accessories (-0.7%), and furniture stores (-0.9%). On an annual basis, sales increased about 2.4% over December 2024, but this did not keep up with the 2.6% increase in the Consumer Price Index, indicating that sales growth was outpaced by inflation.

  • The advanced monthly retail sales estimates are for December 2025.
  • October through December 2025 saw a 3% increase in sales over the same period in 2024.

The players

U.S. Commerce Department

The federal agency that released the report on December 2025 retail sales.

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The takeaway

The slower-than-expected holiday shopping season, with sales growth lagging inflation, suggests the economic recovery may be uneven and that consumers remain cautious in their spending despite broader GDP growth. This data will be closely watched by policymakers and economists as they assess the strength of the overall economy.