The nation's retail sales dipped in June for the second time in three months as debt-burdened consumers cut back on purchases at auto showrooms and department stores.
Sales declined a seasonally adjusted 0.2 percent to $205.2 billion, following a healthy gain of 0.8 percent in May and a slight drop of 0.1 percent in April, the Commerce Department said today. June marked the largest decline in eight months.In advance, economists had anticipated no change in June and the modestly more negative report was seen as offering jittery financial markets at least a bit of reassurance the economy wasn't surging as the second quarter ended.
Weakness in retail sales, which represent about a third of the nation's economic activity, was widespread in June. Auto sales fell 1.4 percent, nearly reversing a 1.8 percent gain in May.
Excluding autos, overall sales edged 0.1 percent higher. But department store purchases declined 0.4 percent, the worst in three months, following a 1.2 percent advance the month before.