American consumers wrapped up the year in a spending mood, buying all sorts of merchandise from furniture to clothing and eating out at restaurants, according to the latest government snapshot.

The figures, announced Thursday, marked a clear sign that consumers are still able and willing to shop, and the data bodes well for 2025 even as shoppers remain deal-focused.

Retail sales rose 0.4% in December from the previous month, the Commerce Department said, though down from November’s upwardly revised 0.8% gain.

The figures suggest that even as many Americans are struggling with higher prices and elevated interest rates, a low unemployment rate and rising wages are encouraging millions of consumers to spend, bolstering economic growth.

Retailers have generally reported healthy sales during the winter holiday shopping season. Much of last month’s increase in spending was driven by a 0.7% jump in car sales, and a 2.3% spike in purchases of furniture. Sales at sporting goods stores jumped 2.6%, while clothing outlets reported a 1.5% increase.

The report isn’t adjusted for inflation, which picked up last month. The retail sales report mostly reflects sales of goods, where prices have been relatively muted. Sales rose 3.9% in December compared with a year ago, the government said, while goods prices have risen just 0.3%.

Separately, the National Retail Federation, the nation’s largest retail trade group, said that holiday sales in November and December rose a better-than-expected 4% compared with the previous year as lower inflation on holiday goods enticed shoppers to buy.

— Associated Press

UNH disappoints Wall Street on 4Q costs

Minnetonka-based UnitedHealth posted a better-than-expected profit in the final quarter of 2024, but a nagging rise in medical costs and care utilization surprised Wall Street.

In the recently concluded fourth quarter, more than 87% of the premiums UnitedHealth collected went back out the door to cover medical costs.

UnitedHealth said it was still dealing with an increase in prescriptions for expensive specialty drugs, rate cuts to its federally funded Medicare business and other cost pressures it detailed in previous quarters. The company’s enrollment in the state and federally funded Medicaid programs dropped by about 400,000 people. UnitedHealth leaders said rate updates from states to cover costs from those remaining have lagged.

UnitedHealth’s adjusted results, which exclude one-time items, totaled $6.81 per share in the quarter. The company’s revenue climbed about 7% to $100.8 billion, which missed expectations.

Analysts expected earnings of $6.73 per share on $101.6 billion in revenue, according to the data firm FactSet.

The company’s full-year profit sank 36% to $14.4 billion in 2024 after climbing every year for nearly a decade. The bottom line was hurt partly by costs tied to a massive cyberattack early in the year.

U.S. jobless benefit claims rise last week

The number of Americans applying for unemployment benefits rose last week, but layoffs remain historically low and the job market broadly healthy.

Applications for jobless benefits rose by 14,000 for the week ending January 11, the Labor Department said Thursday, up from the previous week’s 203,000. The previous week’s figure was the lowest since February of last year.

The four-week average of claims, which softens some of the week-to-week volatility, dipped by 750 to 212,750.

The total number of Americans receiving unemployment benefits for the week of January 4 fell to by 18,000 to 1.86 million.

Weekly applications for jobless benefits are considered a proxy for layoffs.

Average 30-year mortgage tops 7%

The average rate on a 30-year mortgage in the U.S. ticked up this week to slightly above 7%, the highest level in eight months.

The rate rose to 7.04% from 6.93% last week, mortgage buyer Freddie Mac said Thursday. A year ago, it averaged 6.6%. It has risen for five straight weeks.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also rose this week. The average rate increased to 6.27% from 6.14% last week. A year ago, it averaged 5.76%, Freddie Mac said.

— From news services