Talking Points
- Retail sales declined in December 2021 by 1.9%.
- Most of the decline was from poor online sales along with a decline in spending at bars and restaurants.
- December’s import prices were also in decline for the first time since August 2021.
Retail sales was projected to fall by -0.1% by the Dow Jones, however with the surging Omicron Sars-Cov-19 Variant cases consumer activity fell much sharper. Friday, the Commerce Department reported a decline of -1.9% for December, not adjusted for inflation. With the exception of automotive sales, sales fell -2.3% contrary to the initial estimation of a +0.3% increase. November’s numbers were also revised down to +0.2% from the initial +0.3% increase. As sales figures are not adjusted for inflation, the data suggests a slow ending to what was otherwise a strong 2021 in which sales rose +16.9% from the pandemic worn 2020.
Deep Dive
- Online sales took the brunt of the hit with non-store retailers reporting a dip of -8.7%, Furniture and home furnishing sales dropped by -5.5% while sporting goods, music and book stores fell 4.3%.
- Restaurants and bars were up +41.3% during the year 2021, leading all the categories, fell -0.8% in December.
- Gas stations followed the sharp annual increase coming in second place to restaurants and bars up +41% for the year 2021, but saw a 0.7% decline in December when fuel costs began to decrease. On this note, Gasoline prices fell -0.5% closing out the year after a 49.6% increase during the year 2021.
- Miscellaneous store retailers rose +1.8%.
- Building materials and gardening centers rose +0.9%
Import Prices
The Labor Department reported a pricing drop of -0.2% in December, contrary to their earlier projection of an increase of +0.2%. This is the first time since August of 2021 that import pricing was down and this could be attributed in part to import fuel prices falling -6.5% in December.