PREVIEW

Retail Sales Top Predictions Ending 2023 Strong. Yahoo Finance reports that December's retail sales showed consumer spending in the United States continues to be resilient, quelling fears of stalled economic growth. According to Census Bureau data, retail sales grew 0.6% in December. Previous 'Bloomberg' data led economists to forecast a more modest 0.4% increase for the month. In November, retail sales posted another surprise 0.3% increase. "Retail sales beat expectations yet again in December." "Consumers were willing to spend during the holidays and will remain inclined to do so as long as real income gains more than offset the drag from elevated interest rates and tight lending standards." "We think this narrative will persist in early 2024 but then lose steam as the job market deteriorates." Oren Klachkin, Nationwide financial markets economist, via Yahoo Finance. Yahoo Finance reports that nine of the 13 categories tracked in the Census Bureau data saw month-over-month increases. The December report will be scrutinized by investors looking for the U.S. economy to pull off a "soft landing," where inflation falls without a major recession. According to Christopher Waller, a member of the Fed's Board of Governors, economic activity and labor markets are in "good shape," a sentiment backed by Morgan Stanley chief economist Ellen Zentner. "The beat on control retail sales supports Governor Waller's recent remarks the economy is strong enough that the Fed can remain patient in determining its next move." Ellen Zentner, Morgan Stanley chief economist, via Yahoo Finance. THIS VIDEO MUST NOT BE EDITED FOR LENGTH TO COMBINE WITH OTHER CONTENT