By JASON M. BRESLOW - MEDILL NEWS SERVICE
Despite more than $91 billion in economic stimulus payments distributed this past spring, U.S. retail sales fell 0.1 percent in July due in part to slumping demand for motor vehicles, the Commerce Department reported Wednesday.
The dip in retail sales beat most analyst estimates, but still marked the first decline in this key economic indicator since February. Overall, consumer spending represents approximately 70 percent of gross domestic product.
Retail sales were hit hardest by a 2.4 drop in sales of automobiles and parts. Excluding auto sales, all other retail sales rose 0.4 percent.
The report helped send markets down in morning trading. The Dow Jones industrial average was off more than 170 points, the Nasdaq was down 24 points, and the S&P 500 was down 13 points.
Photo courtesy Charlie Brewer, Creative Commons.
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