Retail Sales Fall Second Straight Month

Retail sales fell for a second straight month in May and wholesale prices dropped by the most in three years, raising chances of further action by the Federal Reserve to shore up the flagging recovery.

The data on Wednesday added to a raft of other recent signals, including reports on employment and manufacturing, that have pointed to a slowdown in the economic recovery. Consumer spending was one of the key pillars of support for the recovery in the first quarter, and the retail sales data led a number of economists to cut their forecasts for second-quarter growth.

"This points to further moderation in the pace of economic growth, which would suggest the recovery may need a helping hand from the Fed," said Millan Mulraine, a senior economist at TD Securities in New York. Read more >>