U.S. Retail Sales Probably Stalled in December as Growth Slowed

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from Bloomberg:



U.S. Retail Sales Probably Stalled in December as Growth Slowed

By Bob Willis

Jan. 15 (Bloomberg) -- Sales at U.S. retailers stalled in December, capping the weakest holiday shopping season in five years, economists said before a report today.

Purchases were unchanged following a 1.2 percent gain in November, according to the median estimate in a Bloomberg News survey. A separate report may show wholesale prices rose at a slower pace in December after surging the prior month.

A sustained slump in consumer spending brought on by falling property values and rising unemployment would spell the end of the six-year expansion, economists say. The report would underscore Federal Reserve Chairman Ben S. Bernanke's concern that risks to growth were intensifying.

``The holiday shopping season fizzled as economic concerns mounted,'' said Sal Guatieri, a senior economist at BMO Capital Markets Inc. in Toronto. ``The waning momentum at year's end bodes ill for the new year.''

The forecast for retail sales was based on the median estimate of 74 economists surveyed by Bloomberg News. Projections ranged from a decline of 0.8 percent to a gain of 0.5 percent. The Commerce Department's report is due at 8:30 a.m. in Washington.

Excluding automobiles, retail sales decreased 0.1 percent in December after jumping 1.8 percent, according to the survey.

A Labor Department report due at the same time is forecast to show prices paid by producers, such as factories, mines and utilities, rose 0.2 percent after a 3.2 percent increase in November that was the biggest in 34 years. ......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aLPqj4yCBrOY&refer=home