Retail Sales Continue Decline In November

December 12, 2008 3:26 p.m. EST

Washington, DC (AHN) - The Commerce Depart reported Friday that November retail sales fell 1.8 percent led by the weak auto business. The decline marks the fifth straight monthly drop in retail sales.

The result was slightly better than the 1.9 percent drop economists had predicted, but was a sign that consumers are still just buying the necessities. Compared to November of 2007, retail sales are down 7.4 percent.

Poor auto sales were the main catalyst for the decline, falling 2.8 percent in November. The decline was not much of a surprise since automakers had already reported miserable sales figures for the month.

Excluding autos and related parts, retail sales fell 1.6 percent for the month.

The sharp decline in oil prices impacted gasoline sales the most, down 17 percent in November.

Additionally, the Department of Labor released the November Producer Price Index (PPI). Results showed a 2.2 percent decline in the price of finished goods, marking the fourth straight decline in prices.

The drop was led by an 11.2 percent drop in energy prices during the month.

The reports in sales and price declines come just a day after the government reported a 26-year high in initial unemployment claims.