Retail Sales Rise for First Time in 4 Months

Retailers rang up their first increase in sales in four months during June, the Commerce Department said, as consumers spent more freely after a spring lull. Total retail sales increased 0.5% to a seasonally adjusted $210.3 billion--helped by a surprising pickup in new-car sales--after a revised 0.3% drop in May. Analysts said the June increase reflected a modest revival in consumer demand, enough to fuel continued economic growth but not brisk enough to fan fears of inflationary prices. The Commerce Department said June sales by new-car dealers climbed 1.1% to $50.4 billion, after a 1.2% fall in May. Excluding new cars, June retail sales rose a relatively modest 0.3% after being flat in May and declining 0.6% in April. Sales of all types of durable goods rose 0.5% to $85.1 billion, after a 0.9% fall in May. Sales of non-durables such as food and clothing were up 0.4% last month to $125.2 billion, after rising 0.1% in May.