Retail Sales Up Most in Five Months

Washington, DC, July 14, 2009--June retail sales advanced by the largest amount in five months, led by a surge in gasoline prices and a slight rebound in the trouble auto sector.

The Commerce Department said Tuesday that retail sales rose 0.6 percent last month, better than the 0.4 percent gain that economists had expected. It marked the second consecutive increase and boosted hopes that the economy may be on the verge of a rebound.

While much of the strength came from a price-driven surge at gasoline stations, there was also strength in a number of other areas, including the best showing at auto dealerships since January.

The hope is that the battered consumer, bolstered by tax cuts including in the $787 billion economic stimulus bill, will resume spending in coming months and this will help end a painful recession that is already the longest in post World War II history.

In June, sales of autos and auto parts jumped by 2.3 percent, the best showing since January. However, even with the gain, auto sales are 14.5 percent below the level of a year ago, underscoring the troubles in the industry.

Excluding autos, retail sales rose by 0.3 percent in June, lower than the 0.5 percent rise that economists had expected.

Sales at general merchandise stores, the category that includes nationwide department store chains and giant retail chains such as Wal-Mart Stores Inc., fell by 0.4 percent following an even bigger 1.7 percent decline in May. Sales at specialty clothing stores were flat last month.