US retail sales experienced a modest rise of 0.4% in December, falling short of expectations but still reflecting a solid holiday shopping season. Consumers demonstrated cautious spending as they wrapped up the year, contributing to a year-over-year growth of 3.9% in retail and food services sales. Despite the slower-than-anticipated growth, a major trade group reported that holiday sales increased by 4%, indicating resilience in consumer behavior. Analysts suggest that the strong holiday performance may lay a foundation for economic momentum going into the new year, although concerns linger regarding a potential slowdown in consumer spending.