Retail Sales Fall Unexpectedly in July

New York, NY, Aug. 13, 2009--Retail sales fell in July after two straight months of gains, the Commerce Department reported.

The drop surprised economists.

The Commerce Department said total retail sales declined 0.1% last month, compared with June's revised gain of 0.8%. Total sales were originally reported to have increased 0.6%.

Economists had been expecting June sales to increase 0.7%.

The worse-than-expected monthly report followed a worrisome quarterly report from Wal-Mart Thursday in which the world's largest retailer said it logged an unexpected 1.2% drop in its second-quarter same-store sales.

Sales excluding autos and auto parts also registered an unexpected decline of 0.6% compared to a revised 0.5% increase in the measure in June. Sales, excluding autos, were originally reported to have increased 0.3% in the prior month.

Economists had forecast a gain of 0.1% in July sales, excluding auto purchases.

Excluding a 2.4% gain in automobile sales and a 0.6% gain in clothing purchases in the month, most other retail categories suffered sales declines.

The government report showed building materials sales fell 2.1%, electronics purchases fell 1.4%, department store sales slumped 1.6% and sales at general merchandise stores declined 0.8%.

Elsewhere, furniture sales fell 0.9% and sales at food and beverage sellers declined 0.3% in the month.