Retail Sales Slump in May; Biggest Drop in Eight Months

Retail sales fell by 1.2 percent in May, the steepest decline in eight months as consumers with tight pocketbooks cast doubt on the strength of the economic recovery.

The Commerce Department said a falloff in automobiles sales -- down 1.7 percent -- was a big part of the slowdown. It was the worst month since a 2.2 percent dip in sales last September, the AP said.

Because consumer spending amounts to 70 percent of overall economic activity, the weak showing along with stubbornly high unemployment and tumbling stock prices gave little cheer to the Obama administration, which continues to forecast a steady, if slow, recovery.

Total sales for the month were $362.5 billion -- 6.9 percent above spending in May 2009, during the depths of the recession.