Bangkok--18 Jan--Standard & Poor's While month-over-month sales appeared weak in December in important holiday shopping sectors, combined sales for November and December show that growth was healthy on a year-over-year basis in clothing and accessories stores (3.6%); electronics and appliance stores (3.9%); and sporting goods, hobby, books, and music stores (5.3%); and general merchandise (4.3%), according to an article published today by Standard & Poor's. The report, titled "U.S. Credit Comment: Retail Sales Decline In December (Premium)," says, however, that the retail industry is beginning to see narrowing profit margins due to rising costs, and weaker demand is likely as consumers face a housing recession, higher mortgage rates, and rising fuel costs. "Sales for January will be watched closely, as the growth in the popularity of gift cards has pushed more Christmas sales into this month," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "Look for any weakness in spending to show up in electronics and clothing if the negative effect of falling home prices on wealth and higher energy prices on disposable income really begin to slow the so-far resilient U.S. consumer." The report is available to RatingsDirect subscribers who have upgraded their package to include the Global Fixed Income Research add-on. RatingsDirect is the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber with the Global Fixed Income Research add-on, please contact your local Standard & Poor's representative or [email protected] for further information. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided. Media Contact: Mimi Barker, New York (1) 212-438-5054, [email protected] Analyst Contact: Diane Vazza, New York (1) 212-438-2760 Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com. Key Contacts: Americas Media Relations: (1) 212-438-6667 media_ [email protected] Americas Customer Service: (1) 212-438-7280 [email protected]