"The economic backdrop remains very challenging for our customer,"
- Family Dollar President Mike Bloom
The U.S. shoppers spent less than expected last month, holding off on spending at restaurants and stores, as increased gas prices weighed on their pockets, the Commerce Department said Monday. Sales at American retailers gained 0.4% during June, to a seasonally adjusted $422.79 billion, after a downwardly revised 0.5% increase recorded in May. Economist had expected shops would report a 0.85% gain. Retail and food-services sales were 5.7% higher from a year ago, while sales of cars jumped 1.8%, continuing a strong pattern of sales so far in 2013. However, when excluding sales in auto sector, retail sales were flat. The main drag on growth were gasoline prices, as turnover at pumps increased 0.7% in June, up from a 0.4% growth in May. Report also showed that families tightened their belts, as purchases at restaurants and bars dropped 1.2%, the fastest pace in over five years.
The country's retail sales have demonstrated a stable growth since the depths of the economic crisis, however figures stalled in spring, with sales being flat in first two months of spring and rising only 0.5% in May. As consumer spending accounts around two-thirds of total demand within the U.S., recent data may reflect people's unwillingness to increase spending after they were hit by recent tax hikes and budget cuts.
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