US retail sales dropped 0.2 percent in May

WASHINGTON (AP) — Americans barely increased their spending at retail businesses in April and May, constrained by weak job creation and paltry wage increases.

A sharp drop in gas prices pulled down overall sales in both months by 0.2 percent, the Commerce Department said today.

But excluding volatile gas-station sales, retail sales grew only modestly in May and dipped in April. The report could lead economists to lower their outlooks for April-June economic growth.

"Soft U.S. economic growth may get a little softer in (the April-June quarter) as it is not receiving much support from the all-important consumer," said Jennifer Lee, senior economist at BMO Capital Markets.

Cheaper gas also lowered a measure of wholesale prices by the most in nearly three years.