WASHINGTON — Americans spent less at most retail stores in July, and inflation remained tame as high unemployment and weak job growth fueled fears of a slowing economic recovery.
A busy month for car dealerships and higher gas prices lifted overall retail sales 0.4 percent last month, the Commerce Department said Friday. It was the first overall gain in three months.
Still, most retailers reported declines. Excluding autos and gasoline sales — which accounted for one-fourth of the July figures — retail sales fell 0.1 percent last month. Sales were down 1 percent at department stores and dropped at specialty clothing stores, furniture stores, hardware stores and appliance stores.
“While retailers have seen a solid gain in activity compared to last year, the more recent three-month trend has been negative, and that is not good news,” said Joel Naroff, president of Naroff Economic Advisors.
The Consumer Price Index rose 0.3 percent in July, the Labor Department said. But that was mostly because of rising gas prices.
After stripping out volatile food and gas prices, the so-called “core” index increased 0.1 percent. Over the past year, core consumer prices rose 0.9 percent — the slowest pace in more than four decades.
The Commerce Department also reported that inventories held by businesses rose for a sixth straight month in June. But business sales declined for a second month in a row, another sign of weak demand among consumers.
