Retail sales in the United States report the worst drop in sales in 10 months, this December 2021

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Minority sales decreased more than expected in 2021.

Photo: Photo by Karolina Grabowska/Pexels

In the United States, retail sales fell more than expected in the last month of 2021. 1.9% was what decreased the value of total sales, this figure means the greatest decrease in the last 10 months. According to Bloomberg, this suggests that inflation is taking a huge toll on consumers.

According to the Department of Commerce, if in December the drop in consumption was 1.9%, in November a decrease in consumption of 0.2% was reported. That’s why he didn’t expect it to be so low this time.

Rather the estimates assumed, rather low with a 0.1% drop in retail sales, so the 1.9% surprise.

What worries the experts is that this is going to be transferred a little to the first quarter of 2022. Economists’ forecasts indicate that household spending will decrease. It is already evident that trips and outings to public places are going to decrease due to restrictions in view of the rapid reach of the Covid variant, Omicron.

A more moderate pace of spending is definitely expected for 2022 due to the fall in price-adjusted wages, the end of government financial programs, less possibility of saving.

Drop in retail sales by category

– Retailers without stores, in the category of electronic sales plummeted 8.7% just last month.

– Department store sales fell 7% in December. And in November they had fallen by 5.5%.

– Sales in restaurants and bars, of the services category, fell by 0.8% in December, after they had improved in November.

– When it comes to cars, vehicle sales fell by 0.4%. The manufacture of them had problems throughout 2021, due to the lack of parts and chips. In this area, in December the numbers show a fall of 2.5%, excluding gasoline and cars.

On the other hand, sales of what they call “control group”, those that are used to calculate the gross domestic product, fell by 3.1% in the month of December, if we compare it with November. It remains the biggest drop since February.

Omicron has been one of the main causes of this drop in retail sales. Even before the end of December 2021, statistics indicated that consumption in stores had fallen by 26% compared to the previous year.

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