US shoppers tighten their belts

American retailers have revealed further evidence that US shoppers cut back their spending in shops and malls in January.
From department store Macy's to supermarket Wal-Mart, retailers revealed flat or falling sales.
The US Federal Reserve has cut interest rates to stimulate spending, which accounts for two thirds of the economy.
Higher fuel and food prices, the credit crisis and the housing slowdown are all depressing consumer sentiment.
In a further sign that US shoppers are spending less, Federal Reserve figures show that US consumer borrowing - which includes credit cards - grew at the slowest rate in eight months during December.
It rose at an annual rate of 2.1% in December, sharply down from November's 8.2% jump.
Luxury hit hardest
Wal-Mart, the world's largest retailer, said sales had risen 0.5% but said people were spending on staples, not treats after the Christmas holiday period.
"Customers appear to be holding gift cards longer and using them more often for food and consumables rather than discretionary purchases," it said in a statement.
The more upmarket names saw the biggest declines.
Department store owner Macy's said it was cutting 2300 management posts in a bid to cut costs after January sales fell more than 7%.
Sales at designer retailer Nordstrum fell 6.6% and Macy's saw a 7.1% fall.
Fellow department store chain Saks posted a better than expected 4.4% rise but warned of tough times ahead.
Discounter Costco was one of the few to see better than expected sales figures, up 7%.
The government hopes its proposed economic stimulus package will encourage spending, but some fear the effect will only be temporary, especially if the job market continues to deteriorate.
Last week, the latest jobs figures showed the first decline in employment since August 2003, providing further evidence that the US economy could be entering a recession.