Retail Sales Weak in June

Sputter, sputter


June's surprisingly weak retail sales increase came as surging gasoline prices and mortgage rates weighed on already-tepid wage growth.

Sales rose 0.4% from May, the Commerce Department said Monday, but that was just half the gain analysts were expecting. The prior month's increase of 0.5% also was revised down from an initial reading of 0.6%.

Spending at restaurants and bars fell 1.2%, double May's 0.6% drop and the worst monthly retreat since early 2008. Building material stores' sales sank 2.2%, the most in more than a year, after two months of solid growth.