U.S. retail sales fell more than expected in December, pulled down by a decline in motor vehicle purchases and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.

The Commerce Department said on Wednesday that retail sales dropped 1.1% last month. Data for November was revised to show sales decreasing 1.0% instead of 0.6% as previously reported. Economists polled by Reuters had forecast sales dropping 0.8%, with estimates ranging from a 1.6% decline to being unchanged.

Retail sales are mostly goods and are not adjusted for inflation. December’s decrease in sales was likely in part the result of goods prices falling during the month. Holiday shopping was also pulled forward into October as inflation-weary consumers took advantage of discounts offered by retailers.

[As I suspected, the big spike in October was nothing more than a demand shift from holiday activity. Bear in mind that the lack of adjustment for inflation means that “real” economic activity declined even more than these numbers indicate, although the month-on-month inflation figures for these months was pretty low. What does this mean? People are tightening their grip on cash and businesses will begin to suffer because of it — if they aren’t already. — Ed]