‘97 Retail Sales Gain Is Smallest in 6 Years

American retailers finished 1997 on a relatively strong note after an up-and-down performance, but the gain for the year was the smallest since 1991. Sales rose 0.7% in December, the strongest showing in five months, the Commerce Department said. For the year, sales rose 4.2% to $2.55 trillion, down from 5.2% in 1996. Adjusted for year-to-year inflation in goods, sales rose 2.8% in 1997 versus 2.6% in 1996, when inflation was higher. Low interest rates and a booming job market helped put Americans in the mood to spend, but that was offset by consumer debt and individual bankruptcies that reached new highs. Analysts believe those factors will keep retail spending relatively stable this year. They said spending should moderate somewhat as fallout from the Asian financial crisis slows overall economic growth.