INSTANT VIEW - U.S. retail sales fall 2.7 pct in Dec

NEW YORK (Reuters) - Sales at U.S. retailers fell at a steeper-than-expected rate in December, government data showed on Wednesday, as a deteriorating economic environment forced consumers to cut back on spending during the key holiday period.

KEY POINTS:

* The Commerce Department said total retail sales fell 2.7 percent to a seasonally adjusted $343.2 billion (236.5 billion pounds) last month following a revised 2.1 percent drop in November, previously reported as a 1.8 percent decline.

* December's drop was the biggest since October last year when sales fell 3.4 percent.

* For the whole of 2008, sales eased 0.1 percent, the department said.

* Excluding motor vehicles and parts, sales were down a record 3.1 percent after a revised 2.5 percent decline in November, previously reported as a 1.6 percent drop, the department said

* Total sales, excluding autos, rose 3.0 percent in 2008.

* Analysts polled by Reuters had forecast December retail sales falling 1.2 percent.

* Excluding motor vehicles, sales had been expected to drop 1.3 percent.