US RETAIL SALES FAIL TO MEET EXPECTATIONS

       Retail sales outside of autos turned in a disappointing performance in July, underscoring concerns about the timing and durability sales fell 0.1 per cent last month. Economists had expected a gain of 0.7 per cent.
       While autos, helped by the start of the "Cash for Clinkers" programme, showed a 2.4-per-cent jump - the bigges in six months - there was widespread weakness elsewhere. Petrol stations, department stores, electronics outlets and furniture stores all reported declines.
       The July dip was the first setback following two months of modest sales gains.
       Excluding autos, sales fell 0.6 per cent, worse than the 0.1 per cent rise economists had forecast.
       Petrol station sales plunged 2.1 per cent, due more to falling pump prices than weak demand.
       Excluding the drop at petrol stations, retail sales would have posted a modest 0.1 per cent increase.
       Department store sales fell 1.6 per cent and the broader category of general merchandise stores, which includes big chains such as Wal-Mart Stores and Target Corp, posted a decline of 0.8 per cent.
       The July weakness highlighted worries about the potential strength of the recovery from the recession. Economists are worried that consumers could remain hunkered down which would make any recovery exceptionally weak since consumer spending account for about 70 per cent of total economic activity.
       The disappointing retail sales report followed news last week of continuing troubles at the nation's big chain stores that raised worries about the strength of the back-to-school sales.
       According to the retailers' reports, mall-based apparel stores fared the worst in July. Macy's and teen retailers Abercrombie & Fitcg and Wet Seal reported disappointing results.
       The Commerce report, however, indicated that speciality clothing and accessory stores posted a 0.6-per-cent gain in July, one of the few bright spots in the government report.