Dive Brief:
- Low temperatures kept Americans indoors in December as they bought themselves warm winter clothes and other items online, contributing to the strongest quarter for consumer spending in three years.
- Purchases increased 0.2% after a 0.4% rise in November, U.S. Commerce Department figures revealed Wednesday. Minus a drop in auto demand blamed on the weather, sales rose to their highest point in almost a year.
- Gains in retail were softened by heavy discounts at clothing retailers forced to woo shoppers who are increasingly addicted to scoring deals and shopping online.
Dive Insight:
The Commerce Department’s report bodes well for the coming year, but it remains to be seen if shoppers will lose their taste for price cuts. A lower amount of partisan bickering on Capitol Hill could also help improve consumer confidence, along with companies' outlooks.