Americans spent $382.9 billion in retail and food services last month, a 0.4-percent drop from November statistics, according to a report released Tuesday by the U.S. Commerce Department. Though spending during the peak of the holiday season dipped, it was 4.1 percent higher than sales in December 2006.

Automobile and gasoline sales were included in the Commerce Department's compilation, which accounted for the difference from the projection by the National Retail Federation. The world's largest trade organization reported industry sales rose only 1.7 percent for December, compared to 2006.

In an earlier interview, Chris McCarty, survey director of the Bureau of Economic and Business Research at the University of Florida, suspected sales would decline in December, according to a consumer confidence survey the bureau releases each month. He said 5 percent growth would be a solid year from a retail perspective; anything below that would indicate weak sales.

Tuesday, McCarty said attempts to soften the blow of the 2001 recession played a large part in the latest housing boom, but also set the stage for the current economic conditions.

"Some people take issue with huge rate cuts," he added. "You could make the argument it's the market trying to correct itself. Consumer confidence is a response to an increasingly unfavorable economic environment for consumers. When consumers sit on the sidelines out of the picture, it makes it hard for the economy to go."

Consumers' caution slowed holiday spending - Tallahassee.com