Retail Sales Off 0.1%

Washington, DC, July 14, 2006–Retail sales were off 0.1% in June, according to a Commerce Department report.

It was the second straight month of tepid retail sales. Sales rose 0.1% in May.

Retail sales were up 0.9% in the second quarter compared with the first quarter. Retail sales are up 5.9% in the past year. The figures are not adjusted for price changes.

Weak auto sales led the decline in June, falling a surprising 1.4% measured by dollar volume. Earlier, automakers had reported a slight increase in unit sales in June. Consumers are buying more cars, but they are smaller and cheaper.

Excluding the drop in auto sales, retail sales rose 0.3% in June after climbing a downwardly revised 0.7% in May.

Economists were forecasting stronger sales in June, with the consensus expectation of 0.4% for total sales and for sales excluding autos.

Gasoline sales rose 1.1% in June, despite slightly lower prices at the pump. Excluding gasoline, retail sales fell 0.2%.

The other main area of strength came in furniture and home furnishings stores, where sales rose 1.3%.

Sales at hardware and building materials stores fell 1%. Sales at electronics and appliance stores dropped 0.7%.

Sales at the malls were meek. At general merchandise stores, sales rose 0.3%, but fell 0.3% within department stores. Sales at clothing retailers rose 0.3%. Sales at leisure-time goods stores rose 0.4%.