US retail sales fall in June

| July 14, 2010 | 0 Comments

The Commerce Department today announced retail sales fell by 0.5% in June - the second consecutive monthly fall after a downwardly revised 1.1% fall in May.

Sales were hit by a decline in sales of petrol and cars and were slightly worse than the 0.2% fall expected by analysts.

Meanwhile, on an annual basis, sales were up 4.8%.

The monthly figures will no doubt raise fears over the strength of the recovery in the world’s largest economy as consumer spending makes up for more than two-thirds of overall economic activity in the US.

Sales at sporting goods, hobby and book stores were down 1.4% in June, compared with a 0.3% increase the previous month.

However, purchases at electronics and appliance stores experienced strong growth, rising by 1.3%, while clothing sales were up 0.6%.

Commenting on today‘s figures, Scott Hoyt, senior director of consumer economics for Moody’s, said: “Consumers remain financially constrained. Unemployment is high and wage gains are small.

“Consumers will not lead the recovery,” he added.

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