Retail sales in the United States decreased by 2.8 percent unexpectedly in October, the biggest drop on record, the Commerce Department reported Friday.
The October decline came after retail sales had fallen by a revised 1.3 percent in September and surprised analysts who had been expecting a drop of 2.4 percent for the month.
According to the department, the 2.8 percent decline in retail sales was led by a huge drop in auto purchases,
In October, auto sales plunged by 5.5 percent, the biggest drop since august 2005. While excluding sales of automobiles, which can swing widely from month to month, sales at all other retailers fell by 2.2 percent, also a record decline.
Sales at clothing stores declined 1.4 percent in October. And general merchandise stores saw sales down 0.4 percent.
In the United States, consumer spending accounts for two-thirds of overall economic activity and is a major force pushing the economy to expand.
The bigger-than-expected decline increased the risks of a recession. Many analysts now believe that the U.S. economy is likely to continue to contract in the final quarter of this year and in the first quarter of next year.
Source:Xinhua
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