US Oct retail sales fell 2.8%, deepening downturn

14 November 2008 14:37  [Source: ICIS news]

WASHINGTON (ICIS news)--US retail sales of goods and services fell by 2.8% in October from September to $363.7bn (€291bn), the Commerce Department said on Friday, suggesting that the nation’s economy is slipping further into recession.

 

US consumer spending accounts for as much as 70% of the country’s overall commercial activity, and monthly retail sales figures are seen as a real-time measure of consumer sentiment and likely direction for the general economy.

 

The department said October’s retail sales figure was 4.1% below the level of consumer spending in the same month a year ago.

 

For the three months of August through October, retail sales have declined 1.3% compared with the same period last year, the department said.

 

Much of October's downturn was seen in sales of furniture and home furnishings, which fell 13.5% in October compared with the same month a year earlier, indicating that the long running US housing decline continues to lead the general economic slide.

 

However, the department’s figures also show that part of October’s decline in retail activity was attributed to a 10% drop in gasoline sales, reflecting lower prices for oil and refined products.

 

($1 = €0.80)

 

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By: Joe Kamalick
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