Americans cut back sharply on retail spending last month as the holiday shopping season began amid high prices and rising interest rates that are forcing some families, particularly lower-income households, to cut back on what they buy, according to an Associated Press report.
Retail sales fell 0.6% from November to December after a sharp 1.3% rise the previous month, the government said Thursday (Dec. 15). Sales fell at furniture, electronics, and home and garden stores.
Sales also fell at auto dealers, sporting goods stores and at general merchandise stores, a category that includes large chains such as Walmart and Target.
Consumer spending has been resilient ever since inflation first spiked almost 18 months ago, but the capacity of Americans to continue spending in a period of high inflation may be beginning to ebb. Inflation has been coming down from the four-decade high it reached this summer but remains elevated, enough to erode the spending power of Americans. Prices rose 7.1% in November from a year ago.
