Consumer Spending Continued in December

Consumer Spending Continued in December

Consumers kept spending at a strong pace. Retail sales rose 0.6% in December, double the 0.3% increase in November.

Why it matters: Analysts have been waiting for consumer spending to weaken, mostly because of depleted savings and rising credit card balances. That hasn’t happened because of the strength of the jobs market and strong wage growth.

Be smart: Spending was strong across the board in December, with auto sales and online spending leading the way.

Big picture: As long as the job market remains robust, and incomes steady, consumers will have money to keep spending.