Sales at US retailers fell at a steeper-than-expected rate in December, government data showed today, as a deteriorating economic environment forced consumers to cut back on spending during the key holiday period.
The Commerce Department said total retail sales fell 2.7 per cent to a seasonally adjusted $343.2 billion last month following a revised 2.1 per cent drop in November, previously reported as a 1.8 per cent decline.
December's drop was the biggest since October last year when sales fell 3.4 per cent. For the whole of 2008, sales eased 0.1 per cent, the department said.
Excluding motor vehicles and parts, sales were down a record 3.1 per cent after a revised 2.5 per cent decline in November, previously reported as a 1.6 per cent drop, the department said. Total sales, excluding autos, rose 3 per cent in 2008.
Analysts polled by Reuters had forecast December retail sales falling 1.2 per cent. Excluding motor vehicles, sales had been predicted to drop 1.3 per cent.
Gasoline sales tumbled 15.9 per cent after diving by a record 18.3 per cent in November.
Reuters