Retail Sales Fall for Fifth Consecutive Month

Washington, DC, Dec. 12, 2008--U.S. retail sales dropped 1.8% in November for their fifth straight decline, the Commerce Department reported Friday.

Retail sales -- which account for about a third of final demand -- were down 7.4% compared with a year earlier. In the past three months, sales have fallen 4.7% compared with the previous three months.

The big drop was roughly in line with expectations by economists for a 2.1% decline. Sales fell a revised 2.9% in October and a revised 1.6% in September.
 
But the extent of the decline was exaggerated by a historic drop in retail gasoline prices in November. Excluding the record 14.7% fall in sales at gas stations, retail sales fell just 0.2%.

Contrary to gloomy reports from the private sector, several retail groups recorded their biggest sales increases in years, after seasonal and other adjustments.

Auto sales fell 2.8% in November, confirming reports from the automakers that business had sunk to the lowest levels in decades. Excluding autos, retail sales fell 1.6%, the fourth straight decline.

Excluding both autos and gas, retail sales increased 0.3%, the first increase since July. Retail sales account for about half of consumer spending.

Retail chain-stores reported the weakest monthly sales on record, but the government data don't back that up. One difference: The government tries to adjust its figures for the timing of the Thanksgiving holiday, while the stores don't.

General merchandise store sales rose 1.3%, including a 2.1% gain at department stores, the biggest gain in three years.

Sales at furniture stores rose 0.2%, the biggest increase in six months.