US retail sales rose in July in a hopeful sign for the economy, but the gains were concentrated in car and petrol station sales, suggesting underlying momentum in consumer spending remains tame.
Sales climbed 0.4% last month following a revised 0.3% drop in June, the Commerce Department said today. Economists had been looking for a slightly firmer 0.5% gain.
Excluding vehicles, sales advanced just 0.2% compared with forecasts of 0.3%.
Petrol station receipts, which sometimes reflect price rises rather than increased demand, jumped 2.3%. When cars and fuel were stripped out, sales actually fell 0.1%.
After emerging from its longest slump since the Great Depression, the US economy has slowed in recent months, raising fears of a double-dip recession.
Retail sales are a key component of growth for a country where consumer spending makes up about two-thirds of total economic activity.
Separate figures today show that US consumer prices rose slightly in July thanks to rising energy costs.
Prices rose 0.3% amid warmer than usual summer temperatures across much of the country, the Labor Department said.
'The energy index posted its first increase since January and accounted for over two thirds of the seasonally adjusted all-items increase,' a statement from the department said.
'Both the gasoline and household energy indexes turned up in July after a series of declines,' it added.
The price of fruit and vegetables dipped for the fourth consecutive month. Prices for items excluding volatile food and energy products rose 0.1%, after increasing 0.2% in June.
