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Sales, jobs data spark US recovery fears

US retail sales - Weak holiday shopping
US retail sales - Weak holiday shopping

Official figures show that sales at US retailers unexpectedly fell in December as consumer spent less on vehicles and a range of other goods during the holiday shopping month. The Commerce Department figures raise concerns about the durability of the US economy's recovery.

The department said total retail sales fell 0.3% last month, the first decline in three months, after rising by an upwardly revised 1.8% in November. Analysts had expected December sales to gain 0.5%.

The Commerce Department said sales fell 6.2% for the whole of 2009.

In December, motor vehicle purchases fell 0.8%, while sales at electronics and appliance stores dropped 2.6%.

The data, coming in the wake of a report last week showing a surprise drop in employment in December, could add to worries that the economic expansion that started in the third quarter of 2008 could falter once government stimulus ends.

Excluding motor vehicles and parts, retail sales fell 0.2% in December, the biggest decline since July. Core retail sales, which excludes cars, petrol and building materials, fell 0.3%.