June Retail Sales Off 0.9%

Washington, DC, July 13, 2007—Retail sales declined 0.9% in June, according to the Commerce Department. The drop was the largest since August 2005.

Retail sales excluding automobiles were off 0.4% for the largest decline in that category since September of 2006.

Economists had forecasted a drop of only 0.3% in retail sales and were anticipating a gain of 0.2% in retail sales excluding automobiles.

In the past year, retail sales are up 3.8% before adjusting for inflation.

Sales at gas station sales fell 1.1% in June. Excluding gasoline, retail sales fell 0.9%. Auto sales were off by 2.9% after a 1.1% gain in May. Excluding auto sales, retail sales fell 0.4.

Excluding autos and gasoline, sales fell 0.3%, the biggest decline in three years.

Furniture sales dropped 3%, sales of electronics and appliances fell 1.4%, and sales of building materials fell 2.3%.

Sales at non-store retailers such as catalogs and online stores rose 1.2%.