Summer looks like a washout for some retailers in the U.S.

NEW YORK (AP) — As consumers get ready to celebrate July Fourth, many merchants already have dismissed summer as a washout.

Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing as well as barbecue grills, tents and gardening tools are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.

Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.

Consumers’ confidence in the economy, which had surged in April and May, is projected to be virtually unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.

Some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting any better soon — even as consumer spending makes up 70 percent of economic activity.

That doesn’t bode well for merchants, which need to get rid of summer inventory quickly to make room for fall goods that start to arrive next month.

BMO Capital Markets analyst John Morris estimated that the volume and size of discounts for mall-based apparel retailers he tracks is 10 percent higher than last June even though inventory is down 20 percent.

Employers are still cutting jobs — although at a slower rate — and home prices are still falling, and now Americans are seeing a three-month stock market rally stall.

Consumers’ confidence in the economy has been rebounding since February, fueled in part by the stock market rise. But that improved mood hadn’t translated into much relief for merchants because confidence levels are still well below the 100 reading that’s considered healthy.