Despite a strong November, retail sales retreated in December, suggesting a drop in fourth quarter GDP. A month ago, we were quite upbeat about the retail sector’s performance and we hoped that the momentum would keep going into the holiday season. We are disappointed. It seems that economic activity and household behaviour was not as resilient to the second wave as we had hoped. In December, the volume of retail sales decreased by 0.2% month-on-month. The year-on-year performance shows a more marked decline: 4.0% (working day adjusted). This is the worst reading since the April nadir, although the second dip is much softer than the first (-10.2% YoY).