Why June's Falling Retail Sales Matter

Americans cut their spending at retail businesses for a third straight month, as a weak job market has made consumers more cautious. The Commerce Department says retail sales fell 0.5% in June from May. That followed declines of 0.2% and 0.5% in the previous two months. It was the first three-month decline in retail sales since the fall of 2008, during the height of the financial crisis. Some of the weakness in recent months reflects falling gas prices. But even excluding sales at gas stations, retail spending fell 0.3% in June.