WASHINGTON -- Retail sales fell off a cliff in September, plunging by the largest amount in two years as worried consumers shunned the malls and auto showrooms in the midst of the country's financial meltdown.
Advertisement
The Commerce Department reported Wednesday retail sales decreased 1.2 percent last month, nearly double the 0.7 percent drop that had been expected. The surprise showing significantly increased the risks of a recession because consumer spending is two-thirds of total economic activity.
The weakness was led by a 3.8 percent drop in auto sales. Sales dropped below 1 million units as consumers struggled to find financing.
Retail sales have now fallen for three consecutive months, the first time that has occurred on government records that go back to 1992. Economists had expected sales to be down in September as a flood of bad news about the financial system and rising unemployment increased consumers' worries.
Many analysts believe the overall economy, as measured by the gross domestic product, is slipping into a recession, triggered by a steep slump in housing and the severe credit crisis.
Even excluding auto sales, retail sales showed widespread weakness, falling by 0.6 percent or double the decline outside of autos that had been expected.
Sales at department stores fell by 1.5 percent following an even bigger 1.6 percent drop in July. Sales at furniture stores fell by 2.3 percent. Sales at appliance stores slid 1.5 percent.
Copyright 2008 The Associated Press.
Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Editor's note: It is not our intent to offer comments on local crime or fatality stories.
I love how 1.2 percent represents a plunge and "fell off a cliff". If something falls off a cliff it would be more like 80 to 90 percent drop. I've spent just about the same every month for the past 20 or so months. I'm one of the few who did bad under Clinton and did good under Bush. My family did bad under Carter and good under Reagan. Go figure that one? I made the most money last year than any other year of life. Of course I realized its not my money as its just on loan. I drive cars that are older than 20 years, live in a 30 year old house that is totally clear title with not a single note of any kind., and I have zero credit cards to my name. I could loose everything in about an hour and start over at any time. So far the only definitive thing I have heard is from Obama. He said he wants to put the screws to my employer whereby causing them to layoff people. He wants to go after the big corporate giants. Only problem with that is the corporate giant I work for has no foreign offices, only hires locally, does no outsourcing, buys domestic only, and has offices in all 50 states. Obama wants to teach companies like mine a lesson about profits and taxes. I can't wait until school starts on that one.
G-8 announces global summit on financial crisis 10/15/2008 WASHINGTON - Leaders of the Group of Eight major industrial countries said Wednesday they will meet "in the near future" for a global summit to tackle the...
Thank you for joining our conversations on NewsOK.com. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Leave a commentEditor's note: It is not our intent to offer comments on local crime or fatality stories.
Log in below or sign up (it's free).