May Retail Sales Dip 0.2%; Ex-Autos Increase 0.3%

WASHINGTON — Retail sales fell 0.2% in May, the first decline in 11 months, led by a sharp drop in auto sales as a spending slowdown in the coming months could threaten the economic recovery for state and local governments, the Commerce Department reported Tuesday.

Sales excluding autos increased 0.3% in May, the smallest gain in 10 months.

The March tsunami in Japan and subsequent nuclear crisis disrupted global supply chains and threw auto inventories into havoc, economists said. Motor vehicle and parts sales sank 2.9% for the month, the largest decline since February 2010.

April retail sales were revised lower to a 0.3% increase from the 0.5% gain reported last month. April sales excluding autos were revised to a 0.5% increase from a 0.6% rise.

Economists expected retail sales would fall 0.4% in May and sales excluding autos would increase 0.2%.

For the year ending in May, total retail sales increased 7.7% and sales excluding autos were up 8.2%.

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