Consumer spending down sharply

SPENDING DOWN: Consumer spending, the critical bulwark that has kept the country out of recession, is showing signs of cracking. Retail sales plunged by 0.4 percent last month. ADVERTISEMENT

CONSUMER STRUGGLES: Consumers battered by a sinking housing market, rising unemployment and the credit crunch, handed retailers their worst Christmas in five years.

OVERALL CONCERN: Analysts said the worry is that all the problems weighing on the economy could prompt consumers — who account for two-thirds of economic activity — to sharply limit or even stop shopping.