U.S. Consumer Spending Hits Pause in December; Dollar Unbothered by Weak Stats

Yo, U.S. retail sales legit plateaued in December, no cap. 😱 They stayed flat month-over-month, totally bummin’ out peeps expecting a 0.4% glow up, according to fresh deets from the Commerce Department’s Census Bureau on Tuesday.

The flatline vibe came after November’s solid 0.6% boost, showing a major slowdown from earlier holiday splurges. October sales got the L, revised lower to a 0.2% dip, which is just more proof that shoppers are low key feeling the pinch. 😬💸

These wack stats suggest consumer spending lost its mojo as 2025 took an L, maybe steering the economy into a snoozefest growth path for 2026. 🤔

Key Points 🚀

• Retail sales: Straight 0.0% month-over-month (vs. +0.4% expected), after a +0.6% in November. Come on, fam.
• Retail sales ex-autos: Flat at 0.0% (vs. +0.3% expected)
• Core retail sales (control group): Slipped -0.1% (vs. +0.4% expected) after a minor revised +0.2% in November (peeps were thinking it was +0.4% before)
• Year-over-year growth: A meh +2.4% in December
• Wide-ranging weakness: 8 outta 13 retail areas took an L 😧

This report pulled up a month late, thanks to the epic 43-day government shutdown, but it wasn't even tryin' to sugar-coat the bad news. 🔥

December felt the pain all over. Furniture, clothes, tech, autos, even restaurants all got the negative feels, showing weak extra spending. Some good news? Builders' stuff and garden gear were on the up, along with tiny gains in sports stuff, but online shops? Totally meh the month before, dude. 😶

But yo, what's really concerning is the control squad who reports straight to GDP. Down 0.1% after a Nov flop, making the brainiacs trim Q4 growth guess. Atlanta Fed cut their GDP prediction to 3.7% from 4.2%. 😳

Link to the legit BLS U.S. Retail Sales Report (Dec 2025)

Economists are kinda putting the blame on skinnier savings and dragging income gains. 🙄 The savings rate plummeted from its pandemic high, and pay raises are cooling off. 💀

Bigger tax refunds might pull through some early 2026 support, but people prob gonna stack savings instead of going YOLO with spending. Consumer vibes are holding, but it’s a mismatch with the rich flexin’ more weight. 💪

Market Feels 📉📈

U.S. Dollar vs. top dog currencies: 5-min breakdown ⚡

The Yankee dollar, movin’ within comfy zones pre-event, nosedived hard and wide cuz traders went 😱 over the general flop and the soft revision of November's core fig, hinting that consumer spending might be chiller faster than peeps thought. Treasury yields took a sip too, adding to early dollar pressure. 😬💵

That first swing, tho, was like a Snapchat story—gone fast. About an hour in, the dollar found its groove, making a slow but sure comeback during the sesh, ending a kinda confusing day in NYC. 😅

Backup arrived with sturdy Q4 growth outlooks, with the Atlanta Fed tagging GDP close to 3.7%, plus chill equity markets. Softer Employment Cost Index data suggested cooler salary hypes, nudging the Fed’s chill-and-watch plan. 🌡️

With jobs data and CPI still on the playlist, traders seemed hesitant to dive deep into strong plays based just on retail vibes alone. 🙅

The U.S. dollar clawed back some losses by London closing time, wrapping the day up green on most except against the Canadian hustlers.

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