WASHINGTON, Dec 12: US retail sales have dropped for five consecutive months while wholesale prices tumbled as the country braced for deeper recession, fresh data showed on Friday.

Retail sales dipped 1.8 per cent against tight credit conditions as consumers cut back on their spending in the face of large losses in jobs and wealth, the commerce department said.

The drop was less than analysts’ consensus forecast of a 2.0 per cent decline and lower than a revised 2.9 per cent plunge posted in October but it was the fifth consecutive monthly decline, underscoring predictions the economy appeared headed for an even deeper contraction amid global financial turmoil.

“Retailers are facing the worst holiday shopping season in 15 years,” said Ryan Sweet, a senior economist.

“The persistent decline in spending suggests the economy is sliding deeper into recession and real GDP is expected to decline 4.5 per cent annualised in the fourth quarter, its worst performance since 1982,” he said.

The retail sales drop was driven by slower vehicle sales and also reflected lower gasoline prices.

But the report was worrisome since consumer spending accounts for about two-thirds of US economic activity.

Excluding motor vehicle sales, which have dragged down the indicator in recent months, retail sales fell 1.6 per cent -- lower than the revised 2.4 per cent in October, the department data showed.—AFP