Retail Sales Fall Most in Six Months in December

Washington, DC, January 15, 2008—Retail sales fell by 0.4 percent in December, the most in six months, the Commerce Department said today.

The drop followed a 1 percent gain in November and was the worst showing since June, when sales declined by 0.8 percent.

Excluding sales of automobiles, which can swing widely, sales at other retailers fell by 0.4 percent in December for the largest decline since August.

Many analysts are predicting that the economy grew 1.5 percent or less in the final quarter last year and will be weak in the first quarter this year.

For all of 2007, retail sales grew by 4.2 percent, down from a 5.9 percent increase in 2006. It was the smallest rise since 2002, when sales rose 2.4 percent.