U.S. E-Commerce Growth Slows to Just 1%

Growth in U.S. online retail sales has been winding down steadily since April, growing an estimated 1 percent in October, according to comScore. This is the lowest growth it measured since 2001.

The minute growth reflects curtailed spending across mid to lower income segments, with households earning less than $50,000 decreasing spending by 3 percent compared to a year ago, according to comScore.

Households with income between $50,000 and $100,000 showed marginally positive spending growth (1 percent), while those making at least $100,000 increased their spending at a rate of 14 percent.

“It’s clear that the increase in the country’s unemployment rate along with the shock of the financial market meltdown have had a negative impact on the psyche of the American consumer,” said comScore chairman, Gian Fulgoni.

Retail e-commerce growth rates have fallen from 28 percent in August 2007 to 15 percent in April 2008. In the following six months, the growth rate continued to shrink every month.