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U.S. retail sales drop biggest in 11 months

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U.S. retail sales drop biggest in 11 months

BY LUCIA MUTIKANI

WASHINGTON Wed Jan 14, 2015 2:09pm EST

(Reuters) – U.S. retail sales recorded their largest decline in 11 months in December as demand fell almost across the board, tempering expectations for a sharp acceleration in consumer spending in the fourth quarter.

Economists, however, cautioned against reading too much into the surprise weakness, noting that holiday spending made it difficult to smooth December data for seasonal fluctuations.

“Faulty seasonal adjustments from shifts in holiday spending patterns are probably more to blame for the December decline,” said Steve Blitz, chief economist at ITG in New York. “Looking at the last three months, spending is not collapsing.”

The Commerce Department said on Wednesday retail sales fell 0.9 percent, the biggest decline since last January, after increasing 0.4 percent in November.

Economists had expected only a 0.1 percent drop. Against the backdrop of a strengthening labor market and lower gasoline prices, they said sales should bounce back in January, with some saying December’s decline could be revised away.

Bricklin Dwyer, a senior economist at BNP Paribas in New York, said fewer post-Black Friday shopping days in November than normal threw off the so-called seasonal factor used to adjust the data, resulting in a lower December sales number.

https://www.reuters.com/article/2015/01/14/us-usa-economy-idUSKBN0KN1HY20150114

3 thoughts on “U.S. retail sales drop biggest in 11 months

  1. Home Depot and Lowe’s were completely empty when I visited yesterday. ..
    Disney offering discounts at the parks and cruise lines…
    Double Dip here we come.
    Thank you President Obama!

  2. Spending on restaurants was up 0.8%. So people are saving and eating away their gasoline and energy savings… I’d rather spend on a nice dinner with my wife than give a penny more to the State or Village in taxes. Lot’s of great restaurants in Ridgewood deserve our patronage. But the black hole in Trenton deserves only our disdain.


  3. Anonymous:

    Spending on restaurants was up 0.8%. So people are saving and eating away their gasoline and energy savings… I’d rather spend on a nice dinner with my wife than give a penny more to the State or Village in taxes. Lot’s of great restaurants in Ridgewood deserve our patronage. But the black hole in Trenton deserves only our disdain.

    You still pay taxes.

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