Sales tumble, fanning US recession fears [View All]

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Source: ap



Sales tumble, fanning US recession fears

By JEANNINE AVERSA, AP Economics Writer 1 hour, 21 minutes ago

WASHINGTON - Frugal shoppers cut back on their spending at the nation's retailers by 0.4 percent in December, the most in six months, in a gloomy report that fanned fears of a recession.
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Shoppers turned into penny-pinchers under the strains of a deteriorating job market, expensive energy bills and a persistent housing slump that has weakened home values and propelled foreclosures to record highs.

"Consumers held tight to their wallets in December, raising questions about whether household spending will be enough to keep us out of a recession," said Joel Naroff, president of Naroff Economic Advisors.

In another report, the Labor Department said wholesale prices dipped 0.1 percent in December, but were up 6.3 percent for all of 2007, the biggest annual gain in 26 years, mostly reflecting higher energy costs.

Read more: http://news.yahoo.com/s/ap/20080115/ap_on_bi_go_ec_fi/retail_sales;_ylt=AihaRcM_Dx1xqs6Mom7N8qus0NUE