Worst Retail Sales Trend Since 1974 Expected (Ruth Mantell)

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Fourth consecutive month of declines seen; sentiment, trade data on tap

12:01 a.m. EST Nov. 9, 2008 WASHINGTON (MarketWatch) -- The election heard around the world has ushered in a political sea change throughout the United States.{xtypo_quote_right} "The forces of tighter credit, a slackening labor market, falling household wealth and the deluge of negative news headlines are intersecting to create one of the worst backdrops for consumer demand," according to a Credit Suisse note. "As a consequence, vehicle sales collapsed in October and chain-store reports were softer than already scaled-back expectations." {/xtypo_quote_right}

But Barack Obama. the president-elect, can't look forward to smooth sailing. The recession, persistent distress in the housing and financial markets and mounting job losses will demand his attention, even as immediate remedies may prove elusive. Upcoming data on retail sales are likely to show that consumers, strapped by a credit crunch and rising unemployment, are cutting back on spending.

Still, hope abounds. Thousands of Obama supporters reveled in front of the White House during Wednesday's wee hours. While their widespread elation was clear, one has to wonder how long such spirits will hold up during these tough times.

At a press conference Friday, Obama said a stimulus package is his top priority, and spoke about tough choices for a country with an economy plagued by job losses and financial crisis.

"I do not underestimate the enormity of the task that lies ahead," he commented. "We have taken some major actions to date, and we will need further actions during this transition and subsequent months." Read more.

Data in coming days will shed light on how far those actions need to go.