Retail Sales in July Rise 0.1%; Analysts Fear Slump Ahead

WASHINGTON — Retail sales rose a slight 0.1% during July, the Commerce Department said Tuesday, a second straight monthly gain that analysts warn may be nipped in the bud by rising energy costs.

The July gain, following a revised 1.1% June increase in total sales, normally would be seen as an indication that consumers are spending enough to keep the economy moving sluggishly higher.

But against the backdrop of the Iraqi invasion of Kuwait, the picture was viewed as more threatening. The June and July sales gains followed three straight months of declines between March and May and flat sales in February. Before June, the last significant monthly sales rise was a 2.8% increase in January. The slight pickup during July brought total sales to a seasonally adjusted $149.5 billion and was led by a 3.9% increase in sales of building materials after a 3.2% June rise.