Official figure show that sales at US retailers unexpectedly fell in July from June. The Commerce Department figures cast doubt on hopes for a rebound in US consumer spending in the third quarter of this year.
Total retail sales edged down 0.1% in July, after increasing by a revised 0.8% in June. Sales in June were initially reported to have risen 0.6%. Analysts had expected an increase of 0.7% in July, due to the US government's 'cash for clunkers' programme, which gives consumers cash to swap ageing cars for new, more fuel efficient models.
Excluding motor vehicles and parts, sales fell 0.6% in July after rising 0.5% in June.
Petrol station sales fell 2.1% in July, reflecting a retreat in petrol prices during the month, after surging 6.3% in June. Excluding petrol, retail sales nudged up 0.1%. Sales of building materials were down 2.1% in July after falling 0.6% in June.
A separate report from the Labor Department showed that first-time applications for state unemployment insurance benefits climbed by 4,000 to a seasonally adjusted 558,000 last week.
