U.S. Retail Sales Up State-by-State in December 2025

Why It Matters

The modest national uptick signals resilient consumer spending, yet uneven state performance and sectoral weakness point to localized challenges that could shape retailers’ strategic planning and supply‑chain decisions.

Key Takeaways

• U.S. retail sales rose 2.7% YoY in December 2025.
• New York led state growth with 9.0% increase.
• Alaska showed zero growth, the weakest state performance.
• Furniture sector fell 5.5% YoY; Colorado down 13.3%.
• Only 19 states plus DC posted positive growth.

Pulse Analysis

The latest Census Bureau figures reveal that U.S. retail sales continued their post‑pandemic recovery, expanding 2.7% year‑over‑year in December 2025. While the aggregate growth appears modest, it masks a patchwork of regional dynamics. Analysts note that the upward trajectory aligns with steady wage gains and a lagging inflation environment, which together sustain discretionary spending. However, the pace is slower than the 3.4% rise recorded in the previous quarter, suggesting that the market may be approaching a more measured expansion phase.

State‑by‑state results underscore the importance of localized economic conditions. New York’s 9.0% surge reflects strong tourism and robust services spending, while Hawaii’s 6.8% gain points to a rebound in travel‑related retail. Conversely, Alaska’s flat performance and Florida’s sub‑1% growth hint at weaker consumer confidence in those markets, possibly tied to higher energy costs and tighter credit. Retailers can leverage this granularity to fine‑tune inventory allocation, marketing spend, and real‑estate decisions, targeting high‑growth corridors while trimming exposure in lagging regions.

The sectoral dip in furniture and home furnishings—down 5.5% overall, with Colorado plunging 13.3%—signals shifting consumer priorities. Higher borrowing costs and lingering supply‑chain constraints have dampened big‑ticket purchases, even as smaller, experience‑driven categories thrive. Industry observers expect a gradual rebound as mortgage rates stabilize and home‑improvement incentives re‑emerge. Retailers that diversify product mixes and enhance omnichannel capabilities are better positioned to navigate this transitional landscape.