Soft Retails Sales Put Stocks in Bad Mood

WASHINGTON (MarketWatch) -- U.S. retail sales declined for the first time in eight months in May, tumbling a surprising 1.2%, the Commerce Department estimated Friday. 

Seasonally adjusted sales were mixed across sectors, dominated by large declines at hardware stores, auto dealers, gas stations, department stores and clothing stores. Modest gains were found in most other types of stores.
The results were much worse than expected, as economists surveyed by MarketWatch were forecasting a 0.2% gain in sales. It was the first decline in sales since September 2009; the seven-month winning streak was the longest since 1999
The disappointing results are sure to provoke more talk about a possible double-dip recession following on the heels of the past week's discouragingly weak payrolls report for May. Read the economic preview.
Consumers face many constraints on spending, chiefly weak income growth against a very weak labor market. Credit is tight, and household wealth is likely falling again in the second quarter.

WASHINGTON (AP) -- Retail sales plunged in May by the largest amount in eight months as consumers slashed spending on everything from cars to clothing. The big drop raises new worries about the durability of the economic recovery.
The Commerce Department says that spending fell 1.2 percent last month. Auto sales were down 1.7 percent but there was weakness in a number of areas. Excluding autos, sales fell 1.1 percent.
The big decline cast new doubts about the strength of the economic recovery. Consumer spending accounts for 70 percent of total economic activity. Economists are concerned that households will start trimming outlays as they continued to be battered by high unemployment and a swoon in stock prices.