Auto Sales Boost Retail Trade to Moderate 0.5% Rise in June

Retail sales, boosted by strong auto sales and hot-weather-related buying at department stores, rose a moderate 0.5% in June, the government said today.

The Commerce Department said sales increased $713 million last month to a seasonally adjusted $132.8 billion.

Economists had been expecting a gain of about 0.8%. However, the government revised a previous estimate for the May increase to 0.3%, up from 0.1%.

The moderate June increase may ease fears in the financial markets that a too-strong economy poses the danger of inflation.

Automotive sales in June were up 1.2% to $29.7 billion, a strong increase following declines in both April and May.

Excluding autos, the June sales increase was 0.3%, down from 0.6% in May.

Sales at department and other general merchandise stores were up 1.8% to $15.2 billion, the strongest gain since last August, when the rise was 1.9%.