NEW YORK (CNN/Money) - Retail sales rose 0.7 percent in July, the government said Thursday, a weaker-than-expected increase for the month.

Last month's gain followed a decline in June, when sales fell a revised 0.5 percent instead of falling 1.1 percent as originally reported, according to the Commerce Department.

The department reported sales for July totaled a seasonally adjusted $336.5 billion.

Excluding autos -- which account for about a quarter of total sales and can fluctuate widely from month to month -- sales rose 0.2 percent to $258 billion, versus a revised 0.3 percent gain in June.

Economists on average had expected total sales to rise 1.1 percent and sales excluding autos to rise 0.4 percent, according to Briefing.com.

Industry watchers say it's important to look at June and July's performance together to get a better sense of the state of the consumer.

"July was weaker than anticipated but we also got an upward revision in June. So overall, the result was more neutral than negative," said Michael Niemira, chief economist and director of research for the International Council of Shopping Centers (ICSC).

"We have gone through a slowdown from the more robust pace of sales in the first-half of the year, but I think the slowdown was cause for some worry, not a real concern," Niemira added. "Higher gasoline prices have taken the oomph out of the economy and spending. But without more conclusive evidence of a drop in discretionary spending, I would say the slowdown is more temporary than real. "

However, Niemira said he was surprised by moderation in auto sales despite juicy incentives from car makers.

Auto sales rose 2.4 percent in July, closing the gap on June's percent fall. Furniture sales rose 1.1 percent, compared to a revised 0.2 percent drop in June

But gas station sales dipped 0.5 percent, versus a 0.1 percent gain last month. Building material sales dropped 1.1 percent versus a revised 0.5 percent gain in June.