Consumer Spending Falls on Slower Auto Sales

Washington, DC, May 13, 2008--Consumers cut back on their spending in April, according to the Commerce Department.

The department said Tuesday that retail sales fell 0.2 percent last month, in line with economists' expectations.

It was the second drop in the past three months and was led by a 2.8 percent drop in auto sales, the largest decrease in 10 months.

Not counting the auto sector, retail sales rose by 0.5 percent, as sales at general merchandise storessuch as Wal-Mart posted a 0.5 percent increase, after a  0.1 percent rise in March.

However, sales at department stores were down 0.1 percent.

The 0.2 percent drop in retail sales in April followed a 0.2 percent rise in March and a 0.5 percent decline in February.