Weak US retail sales hint at slower economic growth

U.S. retail sales unexpectedly fell in June as households cut back on purchases of automobiles and a range of other goods, raising concerns the economy was slowing again. "The underlying tone of this report suggests that the recovery is beginning to show some signs of strain. If anything it will temper, at the margin, any consideration for a September rate hike," said Millan Mulraine, deputy chief economist at TD Securities in New York. The Commerce Department said retail sales slipped 0.3 percent last month, the weakest reading since February, after May's downwardly revised 1.0 percent increase. Retail sales excluding automobiles, gasoline, building materials and food services dipped 0.1 percent following a 0.7 percent gain in May. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.