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U.S. retail sales fell in May for the first time in 11 months, dragged down by a sharp drop in receipts from auto dealerships, according to a government report that could raise fears of a prolonged economic slowdown.

Total retail sales slipped 0.2 per cent, the Commerce Department said on Tuesday, after a downwardly revised 0.3 per cent increase in April.

Economists polled by Reuters had forecast retail sales falling 0.4 per cent from April's previously reported 0.5 per cent rise.

In the 12 months to May, retail sales were up 7.7 per cent.

Retail sales last month were depressed by a 2.9-per-cent drop in sales of motor vehicles, the largest decline since February 2010, as a shortage of parts following the earthquake in Japan left inventories lean and prompted manufacturers to raise prices.

Excluding autos, retail sales rose 0.3 per cent last month, the smallest gain since July, after rising 0.5 per cent in April.

The report was the latest in a series of weak data to show the lull in economic activity extending well into the second quarter. The economy started the year on a soft note beset by bad weather and rising oil prices.

A report earlier this month showed U.S. employers added a scant 54,000 workers to their payrolls in May.

Economists pin much of the recent weakness on high gasoline prices and supply chain disruptions from the earthquake and tsunami in Japan and say a new recession is not in the offing.

Receipts at gasoline stations rose 0.3 per cent after increasing 1.4 per cent the prior month. Excluding gasoline, retail sales fell 0.3 per cent after gaining 0.1 per cent in April.

The report painted a generally weak picture of consumer spending, with sales at food and beverage stores falling 0.5 per cent, while receipts at sporting goods, hobby, book and music stores dropped 0.4 per cent. Sales of electronics and appliances fell 1.3 per cent, the largest decline since March 2010.

However, clothing store receipts edged up 0.2 per cent last month, while sales at building materials and garden equipment suppliers rose 1.2 per cent.

Core retail sales, which exclude autos, gasoline and building materials, rose 0.2 per cent in May after advancing 0.3 per cent in April. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a 2.2 per cent annual pace in the first quarter.

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