U.S. retail sales declined in September by the largest amount this year as car sales plummeted following the end of the government's popular Cash for Clunkers incentives program. But outside of autos, sales were better than expected.
The Commerce Department said Wednesday that retail sales dropped 1.5 percent last month. That's smaller than the 2.1 percent fall economists had expected, but still the biggest setback since sales dropped 3.2 percent in December.
Car sales plunged 10.4 percent, but excluding autos, retail sales rose 0.5 percent. That's better than the 0.2 percent increase analysts expected.
Consumer demand, which accounts for 70 percent of total economic activity, is being watched closely by economists who worry that any recovery from the recession could stall due to rising unemployment and tight credit conditions.
Analysts believe the overall economy, as measured by the gross domestic product, is growing in the second half of this year at an annual rate of 3 percent or more. But the concern is that growth rate could slip sharply next year if consumer spending falters. - FOX News Story
How come all we hear is that the Stimulus is working better than expected. It has saved us all and the great Obama pulled us back from the brink of disaster? Sales continue to fall, unemployment continues to go up, things aren't looking much better. The only real difference is that it isn't the top story on the news every broadcast.
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