Retail Sales Fell in June

Washington, DC, July 14, 2010--Retail sales fell in June for the second straight month, according to the Commerce Department.

Retail spending dropped 0.5% in June, the Commerce Department said. That followed a 1.1% fall in May. Much of the weakness last month came from a drop in auto sales. Excluding autos, spending was down 0.1% in June.

The June decline was larger than the 0.2% fall that economists had expected.

The overall number was dragged down by a 2.3% plunge in auto sales, the biggest monthly drop since a 2.5% decline in February.

Some industries showed signs of strength in June. Department stores sales posted a 1.1% gain. The larger category of general merchandise stores, which includes such big retailers such as Wal-Mart, posted a 0.2% increase, but that followed a 1% drop in May.

There was weakness at hardware stores, where sales dropped 1%, and at furniture stores, which saw a decline of 1.1%.