U.S. retail sales in December fell 1.2 percent from the prior month, the worst drop in nine years, the Commerce Department reported Thursday.
The unexpected decline, which came after a downwardly revised 0.1 percent increase in November, signals a weaker economic momentum. Economists surveyed by the Bloomberg had estimated a 0.1 percent gain for December.
The data was released about a month behind schedule due to the 35-day partial federal government shutdown which ended in late January.
Total retail sales for December stood at 505.8 billion U.S. dollars, up by 2.3 percent from December 2017.
Excluding automobiles and gasoline, retail sales slumped 1.4 percent, following a 0.5 percent growth the previous month.
Retail trade sales were down 1.3 percent from the previous month, but 2.1 percent above the same month a year before, while food services and drinking places were up 4 percent from December 2017.
Total sales for the October 2018 through December 2018 period, the first three months of the fiscal year 2019, were up 3.7 percent from the same period a year ago, the report said.
The Consumer Price Index (CPI), a measurement of inflation, was flat in January due to lower energy prices, the U.S. Bureau of Labor Statistics said on Wednesday.
Falling retail sales, coupled with restrained inflation, may help justify the Federal Reserve's recent pledge to be more patient about future rate hikes and be flexible regarding its balance sheet.
After concluding its first policy meeting this year on Jan. 30, the Fed left interest rates unchanged as expected.
