[ad_1]
WASHINGTON, Feb 14 (Reuters) – US retail sales recorded their largest decline in more than nine years in December, causing revenue to fall, suggesting a sharp slowdown in economic activity at the end of 2018.
Walmart manager Karren Gomes is helping stores stock school supplies, while the retail store is getting ready for back to school in San Diego, CA, USA, Aug. 6, 2015. REUTERS / Mike Blake / File Photo SEPTEMBER 12 FOR ALL IMAGES
The Commerce Department announced Thursday that retail sales had dropped 1.2%, the largest decline since September 2009, as the economy emerged from the recession. November data were revised slightly downwards to show that retail sales edged up 0.1% instead of increasing 0.2% as previously reported.
Economists polled by Reuters forecast a 0.2% increase in retail sales in December. Retail sales in December were up 2.3% from a year ago.
The December retail sales report was delayed by a 35-day partial closure of the federal government that ended on January 25. No date has been set for the release of the January retail sales report, due out on Friday.
Excluding automobiles, gasoline, building materials and food services, retail sales fell 1.7% last month, after a slight upward revision of 1.0% in November. These so-called basic retail sales correspond most closely to the consumption expenditure component of the gross domestic product. Previously, they would have jumped 0.9% in November.
The sharp decline in basic retail sales in December suggested a moderation in the pace of consumer spending in the fourth quarter. Consumer spending, which accounts for more than two-thirds of the US economy, grew 3.5% annualized between July and September.
The estimated gross domestic product for the fourth quarter is about 2.7%. The economy grew by 3.4% between July and September.
In December, online and mail retail sales fell 3.9%, the largest decline since November 2008, following a 2.8% gain in November. Revenues at gas stations fell 5.1%, the largest decrease since February 2016, driven by lower gas prices.
Revenues from clothing and furniture stores also declined.
Recipes in restaurants and bars dropped 0.7% and spending at hobby, music and bookstore stores plunged 4.9%, the largest decline since September 2008.
But sales at auto dealerships increased 1.0% in December, after rising 0.7% the month before. Sales in building material stores increased 0.3%. (Report by Lucia Mutikani, edited by Andrea Ricci) (([email protected]; 1 202 898 8315; Reuters Messaging: [email protected]))
Source link
