August's Retail Sales Rise Disappoints Economists

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ales at retailers rose 0.6% in August, but that was significantly less than economists were expecting, news services reported.

Almost all trucking operations depend on the health of retail sales because such sales involve nearly every type of cargo. Consumer spending accounts for two-thirds of all economic activity.

Sales increased to $319.2 billion, after a revised 1.3% increase in July, the Commerce Department said Friday. Excluding automobiles, sales gained 0.7% last month after a revised 1% gain.

Bloomberg said economists had estimated that retail sales rose 1.5%, while Reuters said Wall Street analysts were looking for a 1.4% advance.

Although consumers had more money because of President Bush's latest tax-cut package, some were hesitant to spend it because of concerns over the labor market, Bloomberg said.

Sales of building materials declined 0.2% after rising 7.7% in the last year. Sales at automobile dealerships and parts stores rose 0.5% in August after jumping 2.4% a month earlier, while purchases at clothing and accessory stores dipped 1.4%.

Commerce also said sales at general merchandise stores, which include department stores, increased 1.1% last month after gaining 1.3% in July. S

Receipts at service stations increased 2.7% last month following a 1.8% gain in July. Retail gasoline prices rose to an average of $1.66 a gallon last month from $1.55 in July.