Consumer Spending Puts Retailers on Edge : Retail: Lower than expected monthly sales at leading stores and rising jobless claims reflect a weakening economy.

The nation’s leading retailers Thursday reported disappointing sales for May despite the return of warmer weather, while the Labor Department said the number of newly laid-off workers filing claims for jobless benefits rose by 5,000 last week.

The monthly results reported by the store owners were marginally better than sales from the late winter and early spring. But the figures made it clear that Americans have resumed the frugal and cautious stance they adopted during the recession.

The weakening economy and continued uncertainty about taxes and health reform are nagging at shoppers and casting doubt on retail profits.

“The consumer remains extremely cautious,” said Kenneth A. Macke, chairman of Dayton Hudson Corp. He said his company’s lackluster sales will result in second-quarter earnings significantly lower than a year earlier.

A few retailers, including Federated Department Stores Inc. and May Department Stores Co., fared better than most. But they also saw signs of weakness--Federated Chairman Allen Questrom said business in the Northeast lagged the rest of the country.

One of the big disappointments for merchants in May was apparel sales, which did not improve as much as expected although wintry weather finally disappeared. Several clothing chains, including Limited Inc. and Gap Inc., reported modest sales increases at best.

The big retailers’ sales are considered an important indicator of economic health. Since consumer spending accounts for two-thirds of the nation’s economy, Americans’ willingness to shop determines how other segments, particularly manufacturing, will fare.

Wal-Mart Stores Inc., the nation’s largest retailer, said sales at stores open at least a year rose 6% from May, 1992, while business at all its stores rose 23%.

Wal-Mart’s sales remain below the double-digit increases it was known for in past years.

Same-store sales are considered the most accurate assessment of how well a retailer is doing. The addition of new stores or the closing of older outlets can skew results.

In the new jobless claims report, the Labor Department reported that new applications for unemployment insurance totaled 344,000 last week, up from a revised 339,000 during the week ended May 22.

“It seems to be basically more of the same,” said economist Robert G. Dederick of the Northern Trust Co. in Chicago. “We’re locked in a claims level which is consistent with jobs growth, but unsatisfactory job growth.”