U.S. retail sales drop unexpectedly in April

U.S. retail sales dropped for a second consecutive month in April, an unexpected result that left many experts wondering if consumers had yet regained a desire to spend.
The 0.4 percent decline in April, much worse than the flat reading economists had expected, followed a 1.3 percent plunge in March. It marked the second straight monthly decline, the U.S. Commerce Department reported Wednesday.
Last month, auto sales edged up 0.2 percent after having plunged 2.0 percent in March. Excluding autos, the April drop in retail sales would have been 0.5 percent, much worse than the 0.2 percent gain economists forecast.
Auto sales in April were 20.7 percent below the year-ago level as the country's auto makers continue to struggle through their deepest downturn in decades.
Retail sales outside of autos showed widespread weakness. Department stores and general merchandise stores saw their sales fall 0.1 percent, while demand at specialty clothing stores dropped 0.5 percent.
Sales also fell last month at furniture stores, electronic and appliance stores, food and beverage stores and gasoline stations.
U.S. retail sales had posted gains in January and February after falling for six months in a row, raising hopes that consumer spending, which accounts for about 70 percent of economic activity, might be stabilizing.
The back-to-back declines in the past two months delivered a setback to those hopes.