Retail sales in the United States rose in December more than expected, as Americans disregarded the threat of higher taxes and chose to purchase cars and a range of other goods, signaling momentum in personal consumption at the end of last year.
The Commerce Department reported on Tuesday that retail sales increased by 0.5 percent, following a revised increase of 0.4 percent in November.
Economists surveyed by Reuters had expected retail sales to grow by only 0.2 percent. Year-on-year, sales rose by 4.7 percent, or by 5.2 percent for the entire year of 2012.
So-called core retail sales, which exclude purchases of automobiles, gasoline, and building materials, increased by 0.6 percent in December compared to the previous month when it was up by 0.5 percent.
The growth in core sales for the second consecutive month suggests a recovery in personal consumption in the fourth quarter, after it increased year-on-year by 1.6 percent in the third quarter.
