Retail spending weakens as holiday shopping season progresses

Retail sales looked relatively strong in November. The Thanksgiving weekend was better than many analysts had expected.

Now, concerned consumer have stopped opening their pocket books as wide as retail companies had hoped. Spending in December has dropped off sharply.

According to Reuters, "the retail data service of MasterCard Advisors said that after a strong discount-driven start to retail's most important season, sales have slowed steadily, returning to the modest growth expected this year." Sales in specialty retail stores like The Gap (NYSE: GPS), have only moved up 0.5% from November 23 to December 12. Last year the number was over 5%.

There have already been reports that online spending is not growing as fast as it did last year.

The retail picture now appears to have been an unfortunate mirage. Discounts brought buyers into stores on Black Friday, the day after Thanksgiving, but sales have moved downhill since then.

The consumer does not appear to be carrying the economy on his back, and that does not leave much to keep GDP moving forward.

Douglas A. McIntyre is an editor at 247wallst.com.