Optimism in Consumer Ebbs as U.S. Retail Sales Fall: Economy

The optimism surrounding the outlook for U.S. consumers was taken down a notch as retail sales slumped in December by the most in almost a year, prompting some economists to lower spending and growth forecasts.

The 0.9 percent decline in purchases followed a 0.4 percent advance in November that was smaller than previously estimated, Commerce Department figures showed today in Washington. Last month’s decrease extended beyond any single group as receipts fell in nine of 13 major retail categories.