US retail sales in sharp decline

US retail sales fell unexpectedly in August, the second monthly decline in succession. Sales declined 0.3% last month said the Commerce Department, which also revised July's fall to 0.5% from the 0.1% it had first estimated.

August's weak figure was a surprise for analysts who had predicted a 0.3% rise. Retail analyst Chris Rupkey said the latest figure "sounds the death knell for the consumer". August's sales were still 13.5% lower compared with the same month last year.

"It looks like consumer spending is retrenching, not only retrenching but digging a new hole," said Chris Rupkey, analyst, Bank of Japan-Mitsubishi. He added he would be very surprised to see consumer spending in positive territory in the third quarter.

Mr Rupkey said he expected consumer spending to continue to fall. "I would be very surprised to see consumer spending in positive territory in the third quarter," he said.

Source: BBC