January 15, 2008

Consumer spending drop raises new fears (AP)

A shopper walks in front of storefront advertising in San Francisco, Tuesday, Jan. 15, 2008. Frugal shoppers cut back on their spending at the nation's retailers by 0.4 percent in December, wrapping up the weakest sales year since 2002, in a gloomy report that fanned fears of a recession. (AP Photo/Marcio Jose Sanchez)AP – Consumer spending, the critical bulwark that has kept the country out of a recession, is showing signs of cracking. Retail sales plunged by 0.4 percent last month as consumers battered by a sinking housing market, rising unemployment and the credit crunch, handed retailers their worst Christmas in five years.

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