US retail sales slow amid economic angst

WASHINGTON (AFP) — US retail sales slowed more than expected in June as American consumers cut back spending in the face of economic concerns and worries about the health of major banks, a government survey showed Tuesday.

The Commerce Department reported that retail sales, a vital driver of economic growth, rose a mild 0.1 percent last month. Most economists had predicted that sales would rise 0.4 percent.

Consumers put a brake on shopping trips to car dealers and malls after sales rose a revised 0.8 percent in May.

"Clearly, the domestic economy is on the ropes, with weak employment market conditions, declining home and equity prices, and surging gasoline prices inducing the consumer to pull back on major big-ticket purchases," said Brian Bethune, an economist at Global Insight.

The slowdown in sales could impact second-quarter economic growth, but economists said the report is unlikely to immediately ...