U.S. 2009 retail sales showed the largest drop on record. Those statistics were accentuated with a 0.3 percent drop in in December as demand for autos, clothing and appliances all drooped.
These were the figures released by the Commerce Department on Thursday. The report noted that retail sales declined 0.3 percent in December. Economists had been expected an 0.5 percent rise in sales. Removing auto sales from the equation, sales fell by 0.2 percent. Economists had forecast a 0.3 percent rise in sales sans automobiles.
Sales had been expected to rise as the months of October and November showed positive numbers. Gains of 1.2 percent in October and 1.8 percent in November had raised hopes that consumers are starting to buy, buy, buy.
The U.S. economy is largely dependent on consumer spending. However, as the economy is still largely a jobless one, with many still either out of work or concerned about their job status, consumers are still cautious in terms of spending.
Overall, 2009's drop in sales was the largest on record. Those records go back only to 1992, however. For the year, sales fell 6.2 percent. The only other year that annual sales fell was in 2008, after the global economic collapse, when they slipped by 0.5 percent.
It's interesting to note that the information given by the Commerce Department also points out a stark fact. In prior recessions, the U.S. did not see a retail sales drop. Consumers continued to spend. This may reflect the fear and joblessness of the recovery.
In terms of market segments, for December, sales of autos dropped by 0.8 percent following a 1.2 percent rise in November. Meanwhile, electronics and appliance stores dropped by 2.6 percent. Specialty clothing stores sale a drop of 0.6 percent while sales at general merchandise stores (which would include large retailers such as WalMart and Target), were down by 0.8 percent. Sales at department stores (such as Macy's) remained flat.
Written by Michael Santo
HULIQ.com
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