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US data showing consumer caution

US consumers - Retail sales drop again
US consumers - Retail sales drop again

Official figures show that US retail sales fell 0.4% in April, indicating continued caution among consumers in the face of recession.

The Commerce Department said the retail sales index was 10.1% below the April 2008 level. The April decline surprised most analysts, who had expected no change from March, when sales fell at a monthly rate of 1.3%.

Figures send markets lower

Retail sales in the US are closely watched as consumer spending normally accounts for around two-thirds of the country's economy.

April marked the second consecutive month of a decline in retail sales, after two months of increases.

Excluding food, April retail sales fell 0.4%. Car sales, which have tanked amid the recession, rose 0.2% in April but remained 20.7% below the level of a year earlier.