Weak retail sales dim Fed rate hike prospect

Washington

RETAIL sales in the US were unexpectedly flat last month, as Americans cut back on purchases of clothing and other goods, pointing to a moderation in consumer spending that could temper expectations of an acceleration in economic growth in the third quarter.

Other data on Friday showed producer prices recorded their biggest drop in nearly a year in July, amid declining costs for services and energy goods.

Cooling consumer spending and tame inflation suggest the Federal Reserve w…