Home Depot and Target, two of the largest US retailers, illustrated the regional nature of pressures on US consumers Tuesday, as they announced quarterly falls in sales and increasing pressures on credit.

Target, the mass discounter, reported an increase in write-offs in its credit card portfolio to a 7.6 per cent annualised rate, from 6 per cent last year. Doug Scovanner, chief financial officer, said the problems were focused in Florida, California, Arizona and Nevada, states that have been particularly hard hit by the housing slowdown.