US Shoppers Rein-In Spending as Gas Prices Bite

18 July 2006

WASHINGTON DC - US consumers have cut back on spending again as concern over rising gasoline prices creates a domino-effect on purchases of other products, according to figures released by the Commerce Department.

Retail sales fell 0.2% in June, a slip that caught analysts unawares. They had been predicting a rise of 0.4% for the month.

They believe economic growth will slow to around 3% in the current quarter, after 5.3% growth at an annualized rate in the first three months of the year.