Retail Sales Cap Off the Year With Another Disappointment
Tweet
Share
E-mail
Retail sales dropped unexpectedly in December by 0.3 percent as the demand for automobiles, electronics and clothing all fell.
The disappointing numbers concluded a year in 2009 that saw the steepest decline for retail sales on record that dates back to 1992, slipping 6.2 percent for the period. The decline continues to show the weakness on the recovery from the toughest recession consumers have faced in 70 years.
Economists had expected a 0.5 percent rise in retail sales for December compared to November.
The Commerce Department report also showed a 0.2 percent drop in sales ex-autos. Economists had forecasted a 0.3 percent rise in this data.
The drop in December was the first setback since September, when retail sales fell by 2 percent. Sales had posted a 1.2 percent and 1.8 percent rise in October and November respectively getting the momentum started for a recovery.
Retailers did see a higher number of transactions during the holiday season; however the average ticket price was down as consumers steered towards the deepest discount to fill their gift giving needs.
The 6.2 percent drop in 2009 was only the second time that retail sales had dropped over an entire year since the data has been compiled. The report does not take inflation numbers into account.
Auto sales dropped in December by 0.8 percent after a 1.2 percent rise in November. Clothing sales were down 0.6 percent and electronic and appliance sales were down by 2.6 percent.
The unemployment rate that currently sits at 10 percent is still the largest hindrance impacting the retail sales numbers and the overall economic recovery.
The disappointing numbers concluded a year in 2009 that saw the steepest decline for retail sales on record that dates back to 1992, slipping 6.2 percent for the period. The decline continues to show the weakness on the recovery from the toughest recession consumers have faced in 70 years.
Economists had expected a 0.5 percent rise in retail sales for December compared to November.
The Commerce Department report also showed a 0.2 percent drop in sales ex-autos. Economists had forecasted a 0.3 percent rise in this data.
The drop in December was the first setback since September, when retail sales fell by 2 percent. Sales had posted a 1.2 percent and 1.8 percent rise in October and November respectively getting the momentum started for a recovery.
Retailers did see a higher number of transactions during the holiday season; however the average ticket price was down as consumers steered towards the deepest discount to fill their gift giving needs.
The 6.2 percent drop in 2009 was only the second time that retail sales had dropped over an entire year since the data has been compiled. The report does not take inflation numbers into account.
Auto sales dropped in December by 0.8 percent after a 1.2 percent rise in November. Clothing sales were down 0.6 percent and electronic and appliance sales were down by 2.6 percent.
The unemployment rate that currently sits at 10 percent is still the largest hindrance impacting the retail sales numbers and the overall economic recovery.
You May Also Be Interested In
- Qualcomm files to resell 17.8M shares tied to Modular acquisition
- SEC stay halts Nasdaq's $5M market value delisting rule for small caps
- Jersey Mike's closes IPO at $23 per share on NYSE
Create E-mail Alert Related Categories
Economic Data, Retail SalesSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
