After maxing out our credit cards for months, something had to give…

Retail sales fell 0.6% in November as consumers feel the pressure from inflation.

Consumers pulled back on spending in November, failing to keep up with even a muted level of inflation for the month, the Commerce Department reported Thursday.

Retail sales for the month declined 0.6%, even worse than the Dow Jones estimate for a 0.3% drop. The number is not adjusted for inflation as gauged by the Labor Department’s consumer price index, which increased 0.1% in November, which also was below expectations.

Measures that exclude autos and both autos and gas sales both showed 0.2% declines.

Stocks fell sharply following a mostly disappointing round of economic data released Thursday morning. The Dow Jones Industrial Average was off nearly 500 points in early trading.

h/t SG

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