December retail sales drop 0.3 percent

WASHINGTON - January 14, 2010

The weakness in consumer demand highlighted the formidable hurdles facing the economy as it struggles to recover from the deepest recession in seven decades.

The Commerce Department said Thursday that retail sales declined 0.3 percent in December compared November, much weaker than the 0.5 percent rise that economists had been expecting. Excluding autos, sales dropped by 0.2 percent, also weaker than the 0.3 percent rise analyst had forecast.

For the year, sales were down 6.2 percent, the biggest decline on records that go back to 1992. The only other year that sales had fallen was 2008, when they slipped by 0.5 percent.

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