Retail Sales increased by 0.6% in December to $380.9 billion annualized, lower than the expected increase of 0.8%, following an increase of 0.8% in November after increasing by 1.7% in October. Over the past year, retail sales volume has expanded by 7.9%. Total sales for the 12 months of 2010 were up 6.6% from 2009. The largest increase in retail sales was for the non-store retailers category which grew 2.6%. Sales at building-supply and gardening stores rose 2.0% while health and personal care store sales rose 1.6%. Motor vehicle & parts dealers witnessed a 1.1% increase in sales as automotive companies registered their highest sales figures in 18 months. With the cost of fuel shooting up, gasoline stations sales rose1.6%. Furniture and home furnishing store sales increased 1.0%. Sales at sporting goods, hobby, book and music stores increased 0.4% while food services and drinking places sales rose by 0.2%.The largest decrease came from department stores, with sales dropping by 1.9%. Sales at electronics and appliance stores and food and beverage stores both fell by 0.6%. Clothing and accessories stores sales also decreased by 0.2% after rising by 2.0% last month. Retail Sales excluding autos increased by 0.5% in December, lower than the expected 0.7% increase, after increasing by 1.0% in November (revised downwards from a 1.2% increase) and by 0.8% in October.
The Consumer Price Index increased by 0.5% in December, the sharpest increase in 18 months, higher than the expected increase of 0.4%, to an index value of 219.179 (1982-84=100), after increasing by 0.1% in November and 0.2% in October. Nearly 80%of the increase was due to an 8.5% rise in the gasoline index, also the largest increase in 18 months. Over the year the CPI has increased by 1.5% before seasonal adjustment. The food index increased by 0.1%, after increasing by 0.2% in November and 0.1% in October and is up by 1.5% over the year. Energy Prices increased by 4.6% after increasing by 0.2% in November and are up 7.7% over the year. Excluding food and energy prices, the Core CPI increased by 0.1%, the same increase as December after remaining unchanged in October.
Industrial Production increased by 0.8% to an index value of 94.9 (2007=100) in December, higher than the expected 0.5% increase, following a 0.3% increase in November. Over the year, the industrial production index is up by 5.9%. Capacity Utilization increased to 76.0% for December from 75.4% in November and was 4.6 percentage points below its average for the period from 1972 through 2009. In November 2009, Capacity Utilization was measured at 71.6%.
Business Inventories are expected today at 10:00 AM EST. Business Inventories increased by 0.7% in October to $1,417.7 billion, and were 6.9% more than October 2009 levels. The inventories/sales ratio was 1.27 at the end of October, compared to 1.30 recorded a year ago.
Upcoming Releases
Business Inventories (01/14 at 10:00 AM EST)
Net Foreign Purchases (01/18 at 9:00 AM EST)
Housing Starts (01/19 at 8:30 AM EST)
Initial Claims (01/20 at 8:30 AM EST)
