Retail Sales See Biggest Drop in Three Years

Last Wednesday, the Commerce Department reported that overall U.S. retail sales decreased 1.2 percent last month, which is nearly double the 0.7 percent drop that analysts expected. The recent decline, which represents the biggest fall since August 2005 when retail sales fell by 1.4 percent, caps off a third consecutive month of losses and may have significantly increased the risk of a recession because consumer spending is two-thirds of total economic activity.
Sales at department stores fell by 1.5 percent, sales at furniture stores fell by 2.3 percent, and sales at appliance stores dropped 1.5 percent.

Auto sales, which slid 3.8 percent, lead the pack in retail decline, as consumers struggle to find financing.

Source: MSNBC.com