Sales at U.S. retailers have seen an unexpected decline in December, casting uncertainty over the recovery of the U.S. economy.
Retail sales fell by 0.3% compared to November figures from the U.S. Department of Commerce.
Sales of electrical appliances and cars have to see some of the steepest decline, while sales of basic research – without cars, fuel and building materials went – back as well.
Concern about job security should continue to reduce spending, unemployment remains at 10%.
Many economists expect unemployment will continue to rise until mid-year.
The figures for December to end a difficult year for U.S. retailers, with total sales for 2009 to 6.2% last year.
It is however expected that the sales had been stronger, given the chain stores report positive results for the holiday season.
The weaker than expected sales figures will add to concerns about the strength of the recovery in the U.S. economy.
Unexpectedly in December, U.S. cut 85,000 more jobs, after a number of new jobs in November.
Economists still predict a recovery in 2010, but warn that it is slow.
I suggest a further decline in the economy, but it serves as a warning that the recovery will take time to implement here, said Chris Rupkey, chief economist at Bank of Tokyo-Mitsubishi in New York.