The US Census Bureau announced today that advance estimates of US retail and food services sales for June, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $360.2bn, a decrease of 0.5% from the previous month, but 4.8% above June 2009. It was the second straight month of declines.

Total sales for the April through June 2010 period were up 6.8% from the same period a year ago. The April to May 2010 percentage change was revised from -1.2% to -1.1%. Retail trade sales were down 0.6% from May 2010, but 5.0% above last year. Nonstore retailers sales were up 12.1% from June 2009 and gasoline stations sales were up 8.8% from last year.

Retail sales are a key indicator of US consumer spending, which accounts for about 70% of economic activity and the 0.5% drop in June retail sales was due partly to lower demand for cars and parts, which tumbled 2.3%. Excluding vehicles, all other retail sales fell  0.1%, after falling 1.2% during May.

Clothing store sales increased 0.6% in June, while general merchandise sales were up 0.2%; restaurant and bar sales gained 0.2% while food and beverage store sales dipped 0.5%; furniture sales were down 1.1% and electronic and appliance stores were up 1.3%.

Health and personal care sales climbed 0.5% while mail order and Internet retail sales rose 1.0%. Sales at sporting goods, hobby, book and music stores dropped 1.4%.

Import Prices

US import prices dipped in June by the biggest amount in more than a year in June again signalling the fragility of the recovery.

Import prices dropped 1.3% in June from May, the Labor Department said Wednesday. The decline was the second in as many months and marks the first time since early 2009 in which import prices have fallen for two straight months.

The June decline followed a revised 0.5% drop in May. The Labor Department initially estimated import prices slipped 0.6% in May.