Us retail sales growth may stagnate in December after falling in recent months as the government tightened epidemic prevention restrictions on businesses as a result of the rebound in COVID-19 and limited economic activity during the holiday season.
According to the median forecast of economists surveyed by Bloomberg, Friday's government report is expected to show that retail sales are roughly the same as in November, excluding retail sales at car dealerships falling for the third month in a row.
Although ecommerce sales rebounded slightly during the holidays, a slowdown in the services sector could be a drag on retail sales as epidemic measures restrict catering and travel. Economists expect the vaccine to boost spending in the second quarter, but retail sales are likely to remain weak in the coming months until more Americans are vaccinated.
"in the short term, things may be as bad as they are now, and things will begin to improve gradually with the popularity of vaccines and a more substantial restart of the economy," said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. "
Car retail sales rose 4.6 per cent in November and December and a sharp rise in gasoline prices could boost overall retail sales figures.