December retail sales failed to meet expectations, according to the latest report from the U.S. Census Bureau. The data showed that sales at retail and food services stores were flat over the month, significantly weaker than the 0.4% consensus forecast. Prior months were also revised down by a cumulative -0.1%. Excluding autos, headline sales were flat, and excluding gasoline sales, they were also flat.

The report also showed that sales at the control group of stores, which will feed into the Bureau of Economic Analysis’ (BEA) estimates for GDP, fell by -0.1% over the month in December. This is softer than the 0.4% expected by consensus. Prior months were revised down by a cumulative -0.4%.

UBS noted that residual seasonality was expected to drive today’s report, and it seems that this is indeed the case. The profile for spending in 2025 has been similar to that of 2014, with the same calendar set up. This suggests that consumer spending may be slowing down, which could have implications for the overall economy.

The flat sales figure is a disappointment compared to projections, and it highlights the ongoing challenges faced by retailers in the current economic environment. The report also underscores the importance of monitoring consumer spending patterns, as they can provide valuable insights into the health of the economy.

Overall, the latest retail sales data suggests that the economy may be slowing down, and this could have implications for businesses and investors. It is important to stay informed about economic trends and their potential impact on the market.