US retail sales unexpectedly shrank 0.1% in June, the first decline since February, pulled down by weaker sales of cars and building material.
Wall Street analysts had expected a 0.4% rise in retail sales in June, compared with a 0.1% increase in May.
The Commerce Department said sales at petrol stations climbed 1.1% following a 1.9% gain in May, as higher oil prices continued to inflate prices at the pump.
Petrol station sales were up 20.4% from June 2005. When petrol sales were stripped away, retail sales fell 0.2%.
Consumer spending accounts for about two-thirds of US economic activity and analysts worry that higher energy prices could limit spending, which may pesuade the Federal Reserve that growth was slowing enough to keep infaltionary pressures in check as it considers halting a two year campaign of raising interest rates.
In other news today US consumer sentiment slipped unexpectedly in July, as consumers' view of their current conditions and expectations declined modestly against a backdrop of rising energy prices.
The University of Michigan's preliminary reading on consumer sentiment in July was 83.0, down from June's final 84.9.
The median forecast of Wall Street economists was for a reading of 85.5.
The university survey's index of current conditions slipped to 100.8 in July from 105.0 in June, while consumer expectations declined to 71.6 from 72.0 in June.
