Retail sales unexpectedly flat in July

Washington, Aug 12: US retail sales were unexpectedly flat in July as Americans cut back on purchases of clothing and other goods, pointing to a moderation in consumer spending that could temper expectations of an acceleration in economic growth in the third quarter. The Commerce Department said on Friday that the unchanged reading last month followed an upwardly revised 0.8% increase in June. Retail sales in June were previously reported to have increased 0.6%. Sales rose 2.3% from a year ago. Excluding automobiles, gasoline, building materials and food services, retail sales were also unchanged last month after an unrevised 0.5% increase in June. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. Economists had forecast overall retail sales rising 0.4% and core sales climbing 0.3% last month. Reuters