The deterioration of sales far outpaced the
previous record decline of 3.9% that took place
during the depths of the Great Recession in
November 2008. Auto sales dropped 25.6%,
while clothing store sales collapsed, sliding
50.5%. Restaurants and bars reported a nearly
27% fall in revenue.
Spending may be falling at an even faster
pace than the retail sales figures suggest.
Wednesday’s report did not include spending
on services such as hotel stays, airline tickets or
movie theaters.
Also Wednesday, the U.S. reported that industrial
production, which includes manufacturing,
mines and utilities, posted the biggest drop in
March since 1946.
Manufacturing output dropped 6.3% last
month, led by plunging production at auto
factories that have shut down. Output dropped
3.9% at utilities and 2% at mines as oil and gas
drilling plunged.
And builder confidence in the market for
new single-family homes has fallen off a cliff,
according to an index released Wednesday by
the National Association of Home Builders and
Wells Fargo. Their monthly housing market index
plunged 42 points in April to a reading of 30, the
largest single monthly change in the history of
the index.
Retail sales represent about one-third of
consumer spending, with the rest consisting
of services. But the damage to the sector has
broader ramifications for the economy.
The retail industry supports 1 out of 4 jobs in
the U.S., according to some estimates. That
includes millions of jobs like delivery workers,
Image: Charles Krupa