US retail sales fell for a second consecutive month in May, a worrying sign that consumers are cutting back on spending that fuels most of the economy.
Retail sales fell 0.2% in May, following a revised 0.2% decline in April, the US Commerce Department said.
The department's initial April estimate was a 0.1% increase in retail and food services sales.
The May decline matched expectations as the world's largest economy grapples with slowing growth, high unemployment and uncertainty from Europe, where the euro zone's mounting debt crisis is weighing on US businesses.
Excluding auto sales, retail sales dropped a sharper 0.4% in May and the department revised the April gain of 0.1% to a 0.3% decline.
The weak numbers add to other signs pointing to feeble growth in the second quarter, after the economy grew just 1.9% in the first three months of the year.
Consumer spending accounts for about 70% of the nation's economic activity.
US wholesale prices tumble
Wholesale prices in the US tumbled in May, dragged lower by a sharp drop in energy prices, the Labor Department said today.
The department's producer price index fell 1% in May, the sharpest fall since July 2009. It was the second month of decline in a row after the PPI dipped 0.2% in April.
Energy prices dived 4.3% in May, as crude oil prices plummeted amid worries about Europe's debt turmoil. Foods prices slid 0.6%.
Excluding foods and energy, the so-called "core" PPI rose 0.2%.
