U.S. retail sales rise 0.2% in August

By Jeffry Bartash

WASHINGTON (MarketWatch) - U.S. retail sales rose 0.2% in August - less than Wall Street expected - but sales were higher in July and June than initially believed, the government said Friday. The increase in retail sales last month, the smallest since April, was led by autos, electronics and home furnishings. Excluding then auto sector, sales rose by a seasonally adjusted 0.1%, the Commerce Department said. Economists polled by MarketWatch had forecast retail sales to climb by 0.5% overall or by 0.3% minus autos. Stripping out gasoline stations, retail sales rose 0.2%. The slow pace of sales growth in August, however, was offset by faster sales in the prior two months. The increase in sales for July was revised up to 0.4% from 0.2% and the gain in June was raised to 0.7% from 0.6%. Retail sales account for about one-third of consumer spending, the main propeller of economic growth. In the past 12 months, retail sales have risen a modest 4.7%, unadjusted for inflation.