Retail sales plunge 2.7% in December

The consumer continues to retrench. Since consumer spending represents 70% of the economy, these numbers indicate the economy will contract much more.-Lou

Retail sales plunge 2.7% in December

By Rex Nutting

WASHINGTON (MarketWatch) - Stung by weak demand and falling prices, U.S. seasonally adjusted retail sales plunged 2.7% in December, the Commerce Department estimated Wednesday.

Excluding the 0.7% decline in auto sales, retail sales recorded their biggest drop since record-keeping began in the early 1990s, falling 3.1%. Excluding gasoline and autos, sales fell 1.5%, the largest drop since September 2001. Retail sales have fallen for six months in a row, the longest decline on record.

Sales in October and November were revised lower. Chain stores have reported further weakening in early January as the recession began its second year. December's sales were down a record 9.8% compared with the previous December.