US retail sales posted a larger-than-expected decline in August, although the drop is mostly confined to the automotive sector. a US Commerce Department report today showed
The agency said retail sales fell 0.3 per cent in August -- more than the 0.1 per cent drop that Wall Street analysts had been projecting -- but sales excluding autos rose 0.2 per cent, matching expectations.
July sales figures were also revised upward. July sales advanced 0.8 per cent overall and 0.3 per cent outside of cars, up from the previously reported 0.7 per cent and 0.2 per cent gains.
Economists closely watch retail sales, which are a major component of consumer spending, which in turn accounts for about two-thirds of economic activity.
The report may ease worries about consumer spending that surfaced earlier in the month after many major retailers, including Wal-Mart , reported weak back-to-school sales in August.
In today's report, auto sales slid 1.9 per cent, their biggest fall since June. Some other categories also showed weakness, including clothing, which dropped 1.4 per cent, and department stores, which saw a 0.8 percent decline.
Still, other retail sectors picked up the slack. So-called non-store retailers - Internet and catalog businesses - saw sales rise 1.7 per cent, while sales at health and drug stores were up 1.0 per cent.