NEW YORK (CNN/Money) - Retail purchases fell in August, a government report showed Tuesday, as the back-to-school sales period came in weaker than Wall Street expected.
The Commerce Department report showed a 0.3 percent fall in retail sales in August, compared with an upwardly revised 0.8 percent rise posted in July. Economists surveyed by Briefing.com were forecasting a 0.1 percent decline in the period.
Retail sales, excluding autos, rose 0.2 percent, a bit less than the revised 0.3 percent rise in July but in line with economists' forecasts.
Clothing and clothing accessories posted a 1.4 percent decline in August, the second-biggest drop behind a 2.0 percent decline in auto sales in the period. General merchandise stores posted a 0.4 percent decline.
There were some bright spots in the report, however, as electronics and appliance stores posted a 0.1 percent gain. Health and personal care stores saw sales rise 1 percent, while grocers posted a 0.8 percent rise. But sales fell 0.3 percent at restaurants and bars, suggesting fewer people were eating out, meaning some of the gain at grocers came from people cutting back.
Consumer spending is responsible for about two-thirds of the nation's economic activity, and weak retail sales during the key back-to-school period raises concerns that the economic recovery is slowing down.
"Overall, this report is telling us that consumer spending remains somewhat hostage to the rise in energy prices," said Anthony Chan, senior economist with J.P. Morgan Fleming Asset Management. "Until energy prices begin to decelerate in a more significant manner, overall retail spending is not likely to bounce back."
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