Retail Sales Growth Slowest Since 1991

Growth in retail spending slowed in 1997 to the slackest pace since the recession.

American retailers finished 1997 on a relatively strong note after an up-and-down performance through the year. Sales rose 0.7 percent in December, the strongest in five months, the Commerce Department said Wednesday.

For the year, sales rose 4.2 percent to $2.55 trillion, the smallest gain since 1991. That’s down from 5.2 percent in 1996.

But the picture is different when inflation is considered. Adjusted for year-to-year inflation in goods, sales rose 2.8 percent in 1997 vs. 2.6 percent in 1996, when inflation was higher.

“The gains, even though they look lower, reflect strong demand,” said economist Ira Silver of J.C. Penney Co. Inc.

Much of December’s strength came from autos, up 2.3 percent. Excluding the volatile auto category, sales rose only 0.2 percent.

Furniture stores and clothing shops reported robust increases; department stores, hardware stores and restaurants smaller increases; and drug stores, food stores and gas stations, declines.