By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) - Sales at U.S. retailers declined 0.5% in June to a seasonally adjusted $360.2 billion, the Commerce Department estimated Wednesday, further evidence that the economy has slowed.
Details of the report were mixed. The declines were heaviest in sales of durable goods and gasoline. Sales of soft goods were generally healthy. Read the full report on the government website.
Sales fell for the second straight month after seven consecutive increases. Compared with June 2009, sales are up 4.8%. Sales in the first six months of the year were 6.5% higher than the same period a year ago.
Sales fell an upwardly revised 1.1% in May, compared with a 1.2% decline originally reported.
The figures are seasonally adjusted, but are not adjusted for price changes.
The swoon in June was expected, based on earlier reports from retailers and from automakers. Ahead of the report, economists surveyed by MarketWatch expected sales to fall 0.4% in June. See our complete economic calendar and consensus forecast.
Excluding the 2.3% drop in motor vehicle sales, retail sales fell 0.1% to $299.2 billion, in line with the 0.2% decline expected.
Sales at gasoline stations fell 2% as pump prices declined. Excluding gasoline, sales fell 0.3%.
Excluding autos and gasoline, sales rose 0.1% in June after falling 1% in May.
Retail sales account for about half of total consumer spending and about a third of final sales in the U.S. economy. Despite the decreases in May and June, retail sales for the second quarter were up 1% compared with the first quarter.
Economists are forecasting a modest increase in inflation-adjusted consumer spending in the second quarter, consistent with a 3% annualized growth rate in real gross domestic product.
Consumers are facing major challenges, including weak job growth, large levels of debt and slow income growth. But consumers also have many pent-up demands after two years of recession.
June details
Motor vehicle sales fell 2.3% in June after falling 0.6% in May.
Furniture store sales fell 1.1%. Sales at electronics and appliances stores rose 1.3%, boosted by sales of the new iPhone and other smart phones.
Building materials and hardware store sales dropped 1% after falling a record 9% in May. Sales had soared in March and April, spurred by subsidies for energy-efficient appliances.
Sales at the malls were higher in June. Sales at general merchandise stores rose 0.2%, including a 1.1% increase at department stores. Sales at clothing stores rose 0.6%.
Sales at stores catering to leisure-time pursuits, such as hobbies, sports and reading, fell 1.4%.
Sales at health and personal care stores rose 0.5%.
Sales at food and beverage stores fell 0.5%. Sales at restaurants and bars rose 0.2%.
Sales at non-store outlets, such as catalogs and online stores, rose 1%.
