US retail sales growth slows unexpectedly in June

Shopper with trolley Retail sales have steadily recovered since 2009, but more slowly than after previous recessions

US retail sales grew in June, but at a slower rate than was expected by many analysts.

Sales were up by a seasonally-adjusted 0.4%, half the 0.8% rate expected by the markets.

Sales of building materials - often a volatile item - fell 2.2% in the month, according to the Commerce Department.

The sub-par performance added to expectations that the Federal Reserve will wean the US off economic stimulus more slowly than previously indicated.

Car sales - which can also vary greatly from month to month - jumped 2.1%, while furniture and household goods rose 2.4%.

Total retail sales in June were 27.5% up from their level at the bottom of the recession in mid-2009.

The figures come on top of weaker trade and manufacturing data, pointing to a softening in the US recovery.

"The disappointing rise in retail sales values in June increases the chances that GDP grew at an annualised rate of less than 1% in the second quarter," said Paul Dales, US economist at research firm Capital Economics.

"Even more worrying is that sales growth appears to be losing momentum heading for the third quarter."

More on This Story

US Economy

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Toronto Mayor Rob FordFord nation

    Toronto mayor's enemies unite with him in new battle

  • Tattooed person using tabletRogue ink

    People who lost their jobs because of their tattoos

  • An ant and a humanAnts v humans

    Do all the world's ants really weigh as much as all the humans?

  • Two sphinxes guarding the entrance to the tombTomb mystery

    Secrets of ancient burial site keep Greeks guessing

From BBC Capital


  • TokyoThe Travel Show Watch

    Japan has a reputation for being expensive but can you visit without breaking the bank?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.