SALES GROWTH SMALLEST IN 30 YEARS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, January 15, 1992                   TAG: 9201150064
SECTION: BUSINESS                    PAGE: A-5   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium
SALES GROWTH SMALLEST IN 30 YEARS
Disappointing Christmas sales pushed the nation's retail sales lower for a third straight month in December and held growth for all of 1991 to the smallest in 30 years.
Analysts saw little chance for improvement before summer due to Americans' worries over jobs and incomes. Some said the report, which also showed sales had been worse than first thought in October and November, could mean the economy had slipped back into recession.
December sales totaled a seasonally adjusted $151.2 billion, down from $151.7 billion in November, the Commerce Department said. It was the third straight disappointing holiday shopping season, which many retailers count on for half of their annual sales and profits.
For the year, the government said, sales totaled $1.8 trillion, a gain of 0.7 percent after a 3.8 percent advance in 1990. It was the smallest increase since a 0.1 percent decline in 1961.
"It could tip either way," said Kermit Baker of Cahners Economics in Newton, Mass., "but it's not inconceivable that we'll have a minus fourth quarter."
"Until the economy gets a boost from Washington, consumer confidence will continue to drag, and as long as consumer confidence is weak, the retail sector will remain in the doldrums," said John M. Albertine, head of a Washington economic forecasting service.
Baker contended, however, that falling interest rates, which already have captured the attention of the investment community, will show up in other economic sectors by mid-year.
Tuesday's report showed:

Department store sales fell 2.2 percent after edging up 0.6 percent in November. Apparel sales were down 0.7 percent after remaining flat a month earlier.

Supermarket sales were up 0.3 percent after falling 0.4 percent a month earlier.

Drug store sales rose an identical 0.3 percent after posting a 0.6 percent loss in November.

Restaurant and bar sales were up 1.5 percent after a 0.9 percent gain the previous month. But gasoline station sales dropped 2.4 percent after a 0.8 percent gain a month earlier.

Automobile sales fell 1.1 percent in December after a 1.5 percent loss a month earlier. Carmakers have said 1991 was the worst year for sales since 1983.

Sales of durable goods - big-ticket items including autos and appliances expected to last more than three years - declined 0.5 percent in December after a 1.4 percent loss a month earlier.

Sales of building materials and hardware rose 0.6 percent but failed to erase a 2.2 percent loss in November. Sales of furniture and other home furnishings slipped 0.1 percent after falling 0.8 percent a month earlier.

Sales of non-durable goods such as food and clothing, which represent two-thirds of all retail sales, declined 0.3 percent after being unchanged the previous month.

by Archana Subramaniam by CNB