Xmas Sales Lower Than Expected

The final week of Christmas saw U.S. same-store sales up only 1.7% over last year, according to the International Council of Shopping Centers. The ICSC also reported that the same-store sales for November and December combined will come in at about 2.5%, at the low end of UCSC’s prior predictions. These measurements are for chain-stores at shopping malls that were in existence last year, and are the industry standard measurement of retail vitality.

Since consumer products are 70% of the U.S. economy, sluggish growth in the Christmas shopping season does not portend well for Q4 2006 GDP growth.