U.S. Retail Sales Rise in 2023 Despite Challenges

Online and non-store sales see significant increase, while deflation emerges as a new factor influencing consumer spending.

Despite challenges such as overseas warfare, severe weather, inflation, and picky consumer spending, 2023 was a successful year for retailing in the U.S, with total retail sales, excluding gas and auto sales, rising 5.32% over 2022.
Core retail sales, excluding restaurant, gas, and auto sales, were up 4.46% in 2023. For November and December, core retail sales were 3.3% and total retail sales were 3.7%.
Online and other non-store sales saw a significant increase, up 31.2% year-over-year unadjusted, indicating a strong preference for online shopping.
Despite the overall positive trend, certain sectors such as electronics and appliances, furniture and home furnishings, and building and garden supply stores saw a decline in sales.
Consumer spending is now being influenced by a new factor: deflation. Goods prices, less food and energy, have fallen for six straight months.