U.S. retail sales unexpectedly fell in June for a second straight month, likely damping down expectations for strong economic growth in the second quarter of the year, the Commerce Department reported on Friday.
Retail sales fell 0.2 percent from the previous month to a seasonally adjusted 473.5 billion U.S. dollars in June, following a revised 0.1 percent decline in May, the Commerce Department said.
Year on year, total retail sales rose 2.8 percent last month. In June, purchases of motor vehicle and parts rose 0.1 percent, while sales at food and beverage stores dropped 0.4 percent.
Excluding volatile auto sales, total retail sales edged down 0.1 percent from the previous month. As consumer spending is a major driver of U.S. economic growth, the sluggish retail sales report in June might damp down expectations for strong economic growth in the second quarter of the year.
The U.S. economy grew at an annual rate of 1.4 percent in the first quarter of this year.
According to latest forecast from the Federal Reserve Bank of New York, the U.S. economy is expected to expand at 1.9 percent in the second quarter, still below the average 2 percent pace of U.S. economic recovery over the past several years.
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