US retail sales fall for 3rd straight month in June

WASHINGTON: U.S. retail sales fell for a third straight month in
June as demand slumped for everything from cars and electronics to
building materials, a sign the economic recovery is flagging.
Retail sales slipped 0.5 percent, the Commerce Department said on Monday.
It
was the first time sales had dropped in three consecutive months since
late 2008, when the economy was still mired in a deep recession.
Analysts polled by Reuters had expected retail sales to rise 0.2
percent.
"Evidence is increasingly clear that the U.S. economy
is slowing," said Jim Baird, an investment strategist at Plante Moran
Financial Advisors in Kalamazoo, Michigan.
The report adds to a spate of weak economic data that is raising pressure on President Barack Obama
ahead of his November reelection bid. Republican challenger Mitt Romney
is focusing his campaign on the weak economy that has plagued Obama's
presidency.
The report raised hopes the Federal Reserve could launch another bond-buying program to help the economy.
U.S.
stock index futures added to losses, while yields on American
government debt fell, reinforcing the view the U.S. economy needs more
stimulus from the Fed.
Job creation in the United States has
slowed dramatically in the last few months as employers worry about a
sagging global economy hurt by Europe's snowballing debt crisis. The
country's factory sector also has shown signs of contraction, although
on Monday a survey of New York manufacturers perked up in July after a
sharp drop-off the month before.
The retail data is worrisome
because it suggests consumer spending, which drives about two-thirds of
the economy, is also sagging.
"This is another example of how broader economic uncertainty is having an impact on economic activity," said Eric Fine, managing director of Van Eck G-175 strategies in New York.
Separately,
a poll showed on Monday that American companies are scaling back plans
to hire workers and a rising share of firms feel the European debt
crisis is taking a bite out of their sales.
The poll showed 47 percent of companies polled felt their sales have dropped due to Europe's woes.
Among
companies that produce goods rather than provide services, the impact
was even greater, with nearly four in five reporting a Europe-driven
decline in revenues, according to the poll.
The Commerce
Department said sales of motor vehicles and parts dropped 0.6 percent
last month. Receipts at electronics and appliance stores declined 0.8
percent. Sales of building materials slipped 1.6 percent, while
receipts as gasoline stations dropped 1.8 percent.
Excluding autos, sales fell 0.4 percent. - Reuters