October Retail Sales Plunge 2.8%; Drop Is Largest on Record

Retail sales fell 2.8% in October, the biggest drop on record, the Commerce Department said Friday.

Economists had forecast that sales would fall 2.1% following a revised 1.3% downturn in September, Bloomberg reported. The drop exceeded the previous 2.65% drop in November 2001, in the aftermath of 9/11.

Sales excluding automobiles fell 2.2%, the largest drop on record and almost twice the 1.2% forecast, Bloomberg said. Auto sales fell 5.5%.

Commerce began recording retail sales in 1992.

Job losses, plunging stocks and falling home values may continue to push spending down, Bloomberg said. Retailers are expecting the worst holiday sales season in six years.

Almost all trucking operations depend on the health of retail sales because such sales involve nearly every type of cargo.