Retail Sales: Largest Monthly Decline on Record in October

Daily Forex Fundamentals | Written by Wachovia Corporation | Nov 14 08 14:39 GMT |

Retail sales fell 2.8 percent in October, the fourth consecutive decline and well-below expectations. Excluding motor vehicles, sales fell 2.2 percent. Core retail sales, excluding gasoline stations, building materials and autos fell 0.5 percent. Gasoline station sales had the largest decline, 12.7 percent. Retails Sales Fell as Prices at the Pump Declined Retail sales fell 2.8 percent, the largest monthly drop since the series began. The biggest drop was in gasoline station sales, which fell 12.7 percent since prices at the pump have come off their high. Auto sales continued to decline as cost-conscious consumers shy away from big-ticket items and bargain hunt. No Holiday Cheer for Retailers The weakness in retail sales means that consumer spending will almost certainly decline in the coming quarters and could be a harbinger of real trouble this holiday season. We expect holiday sales will decline between zero and two percent. The only silver lining is that core sales excluding gas, building materials and autos were up 2.3 percent year over year. Wachovia Corporation http://www.wachovia.com Disclaimer: The information and opinions herein are for general information use only. Wachovia Corporation and its affiliates, including Wachovia Bank, N.A., do not guarantee their accuracy or completeness, nor does Wachovia Corporation or any of its affiliates, including Wachovia Bank, N.A., assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sales of any security or any foreign exchange transaction, or as personalized investment advice. Securities and foreign exchange transactions are not FDIC-insured, are not bank-guaranteed, and may lose value.