In a surprising release, the US Commerce Department revealed that retail sales rose less than expected in the month of December.  With US economic growth stunted, consumers looking for a deal hit the shopping malls and stores early, in the month of November – leaving little demand for the last month of the year.  The lackluster figure is keeping major currency gains relatively muted against the US dollar, with higher yielders like the Australian dollar currently trading at 1.0310 – previously trading as high as 1.0375 in the New York morning.

According to the governmental report, retail sales in the world’s largest economy advanced by a paltry 0.1%.  The figure contrasts with a 0.3% expected mark by analysts and falls below the 0.4% surge witnessed in November.  Excluding auto and gasoline sales – both considered to be volatile components of the report – the survey showed no change in the month to month comparison.

Falling gasoline prices and massive sales by stores desperate for retail market share contributed widely to the less than impressive figure – even as retail store volume numbers soared through the roof during the holiday season.

The release does little to support the nascent theory that the US economy is on the road to recovery and may spur further calls for additional stimulus when the Federal Reserve meets later this month.  There is already a growing faction in the central bank calling for looser monetary policy in order to create a floor on joblessness and increase consumption <read the alert here>.