Stung by weak demand and falling prices, U.S. seasonally adjusted retail sales plunged 2.7% in December, the Commerce Department estimated Wednesday.
Excluding the 0.7% decline in auto sales, retail sales recorded their biggest drop since record-keeping began in the early 1990s, falling 3.1%. Excluding gasoline and autos, sales fell 1.5%, the largest drop since September 2001.
Retail sales have fallen for six months in a row, the longest decline on record. Sales in October and November were revised lower.
Chain stores have reported further weakening in early January as the recession began its second year.
December's sales were down a record 9.8% compared with the previous December. Sales excluding autos were down a record 6.7% in the past year.
For all of 2008, sales fell 0.1% compared with 2007, the first decline in annual sales since 1992.
The figures are not adjusted for price changes, but are adjusted for seasonal variations.
The decline in total sales was much worse than the 1.5% drop expected by economists surveyed by MarketWatch. They expected sales excluding autos to drop 1.6%.
Sales have now fallen six months in a row, with the declines accelerating as the economy weakened in the final quarter of the year. Sales in the final three months of the year were 6.8% lower than in the period from July to September.
Sales were weak across the board. Only health and personal care stores managed to increase from November's dismal sales results.
Some of the decline in sales can be attributed to falling prices. Economists believe consumer prices fell 0.8% in December; the inflation data will be released on Friday.
Details
Falling gas prices pushed sales at gas stations down 15.9% after November's 18.3% decline.
Sales at general merchandise stores fell 1.3%, including a 2.3% drop at department stores, the biggest drop in nearly five years.
Sales at clothing stores plunged 2.5%. Sales at sporting goods and other stores catering to leisure-time activities fell 0.4%.
Sales at auto dealers fell 0.7% and are down 22.4% in the past year.
Sales at furniture stores dropped 1.8%. Sales at hardware and garden stores fell 2.9%. Sales at electronics and appliance stores fell 1%.
Sales at food and beverage stores fell 1.4%, the biggest drop in nearly eight years. Sales at restaurants and bars dropped 2.2%, the biggest drop since September 2001.
Sales at health and personal care stores rose 0.4%.
Sales at nonstore outlets, such as catalogs and online stores, fell 1.9%.
