Washington, DC, Sept. 12--U.S. retail sales rose in August, but by less than expected, given government tax relief.
Retail sales rose 0.6% last month, the Commerce Department reported Friday, after a brisk 1.3% advance in July. Auto sales went up 0.5%
Without auto sales, overall retail sales would have gone up by 0.7%. Without gasoline and auto sales, retail sales would have advanced by 0.4%, a figure economists say is a better gauge of consumer spending.
Economists had expected overall retail sales would rise 1.6%, and climb 0.8% if auto sales were excluded. A stronger showing was expected due to recent data on motor-vehicle sales and chain-store sales. Consumer spending accounts for two-thirds of U.S. economic activity. Some economists have said they expect Bush administration tax relief and monetary policy will sustain American spending the rest of the year.
Sales at building-materials and garden-equipment stores slipped 0.2%, after a 1.6% gain in July. Furniture sales rose 0.7%, and grocery-store sales advanced 0.3%. Sales at general-merchandise stores, gasoline stations and electronics and appliance stores also rose. Clothing sales tumbled.
