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UPDATE 1-U.S. retail sales drop again in November

Published 12/12/2008, 08:52 AM
Updated 12/12/2008, 08:55 AM
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(Adds details, market reaction)

WASHINGTON, Dec 12 (Reuters) - Sales at U.S. retailers dropped for the fifth straight month in November as gasoline sales took a record tumble, according to government data on Friday that showed consumers still doing some shopping despite the fact the economy is in recession.

The Commerce Department said total retail sales fell 1.8 percent to a seasonally adjusted $355.66 billion last month following a revised 2.9 percent plunge in October. Excluding motor vehicles and parts, sales were down 1.6 percent in November after a revised 2.4 percent October fall.

The November sales decline was slightly less than the drops of 1.9 percent for total sales and 1.8 percent for sales excluding motor vehicles that had been forecast by Wall Street economists surveyed by Reuters. Sales of furniture, electronics and clothing were up last month after decreasing in October.

Prices for U.S. Treasury debt securities eased after the sales data was issued but the dollar's value was little changed.

Gasoline sales plummeted a record 14.7 percent in November after falling 12.9 percent in October. Significant falls in prices at the pump are reflected in the retail sales report, which simply compiles total sales by gasoline stations.

Excluding gasoline, retail sales for November edged down just 0.2 percent after a 1.6 percent slide the previous month.

Sales of electronic goods climbed 2.8 percent in November, the strongest monthly rise since the beginning of 2006. Clothing sales were up a modest 0.8 percent after a 2 percent drop in October.

But sales by new cars and parts dealers fell 2.8 percent after declining 5.5 percent in October. New-car sales have been dropping steeply for months, in part because of an ongoing credit crisis that makes it harder to get loans but also because consumers have been cautious about buying costly items when jobs are being cut and the economic outlook is weakening.

(Reporting by Glenn Somerville, Editing by Chizu Nomiyama)

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