text: Retail sales rise 0.5% in December | News-Herald Media | marshfieldnewsherald.com
  Retail sales rise 0.5% in December
  Post-Christmas sales at a shopping mall in Los Angeles Dec. 26. / ROBYN BECK AFP/Getty Images	by Martin Crutsinger, Associated Pressby Martin Crutsinger, Associated Press Filed Under
  WASHINGTON (AP) - Consumers increased their spending at retail businesses in December, buying more autos, furniture and clothing.
  The Commerce Department said Tuesday that retail sales rose 0.5% in December from November, slightly better than November's 0.4% increase and the best showing since September.
  A 1.6% jump in sales of autos and auto parts led all categories. Car companies closed out their best sales year since 2007.
  Total retail spending was even stronger when factoring out a drop in gas prices. Excluding a 1.6% decline in gas station sales, retail spending increased 0.8%.
  The retail sales report is the government's first look at consumer spending, which drives roughly 70% of economic activity.
  Earlier this month, major retailers reported that a last-minute surge in spending helped salvage the crucial holiday shopping season. Retailers can often make as much as 40% of their annual revenue during the final two months of the year.
  In addition to strong car sales, the government report showed consumers spent 1.4% more at furniture stores, 1.4% more at health and personal care shops, and 1% more at specialty clothing stores.
  Sales were flat at general merchandise stores, a category that includes department stores such as Macy's and big retailers such as Wal-Mart and Target. But that followed a 0.8% decline in November.
  Still, 2012 ended as the worst year for retail sales growth since the Great Recession ended more than three years ago. Retail sales rose just 5.2% in 2012. That's slower than the 7.9% growth in 2011 and 5.6% growth in 2010.
  And 2013 could be even weaker because lawmakers and President Obama allowed a two-year reduction in Social Security payroll taxes to lapse. Most Americans will see less money in their paychecks this month. That's likely to dampen retail sales and weigh on overall economic growth.
  The economy grew at an annual rate of 3.1% in the July-September quarter. But most economists believe growth slowed to below 2% in the October-December period, in part because of expected weakness in consumer spending. Income growth remains weak, constraining the amount consumers can spend.
  Job growth has been steady, although unemployment is still high at 7.8%. In December, employers added 155,000 jobs, roughly matching the monthly average in 2011 and 2012.
  The economy has shown some signs of improvement. The once-battered housing market is recovering, which should lead to more construction jobs. A gauge of U.S. service firms' business activity expanded in December by the most in nearly a year.
  In a separate report out Tuesday, the government said U.S. companies increased their stockpiles a steady pace in November from October, responding to a solid increase in sales.
  Commerce said business inventories grew 0.3% in November, matching the October gain.
  Sales rose 1% in November, the best showing since a 1.2% rise in September. In October, sales had fallen 0.3%, reflecting in part disruptions caused by Superstorm Sandy.
  More restocking leads to more factory production, which boosts economic growth. Faster restocking helped the economy grow at a 3.1% annual rate from July through September.
  Most economists say inventory growth has slowed from this summer, a key reason many are predicting economic growth weakened to a rate below 2% in the October-December quarter.
  Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.Read the original story: Retail sales rise 0.5% in December
  Excluding lower gasoline prices, retail spending rose 0.8%. A link to this page will be included in your message.