Source: FT.com

The dire mood among US consumers was highlighted on Friday when figures showed that retail sales fell by 2.8 per cent in October – the steepest monthly drop since the commerce department began measuring the data in 1992.

The fall in retail sales was more rapid than the 2 per cent decline economists were forecasting.

“Gas prices are the only factor working in support of the consumer, but that is no match for falling employment, incomes, wealth and credit availability,” said Alan Ruskin of RBS in Greenwich Connecticut.

The data raised concerns that consumption, which accounts for about two-thirds of US gross domestic product, could shrink at a faster pace in the current quarter than the 3.1 per cent decline in the third quarter.

Full Story

Technorati Tags: retail sales

Related Items