--US June retail and food service sales +0.2% vs May's 0.4%
--US June retail and food service sales ex-autos -0.2%; May 0.4%
--US June retail sales ex-food services +0.2% vs May's +0.3%
--US June auto sales +1.5% vs May's +0.2%
--US June electronic sales +1.1%; building material sales unchanged
--US June health sales +0.5%; food and beverage sales -0.3%
--US June gas station sales -1.8%; apparel -1.0%
--US June department store sales +0.9%

By Simon Kennedy
Washington, July 13 (BridgeNews) - U.S. retail and food service sales edged up 0.2% in June, but were just half the revised May rate and analysts' expectations, the Commerce Department reported Friday. Consumer demand for motor vehicles provided some support for a shaky economy, but excluding automobiles sales dropped 0.2%, well below projections for a 0.2% rise.
Sales of motor vehicles and parts rose 1.5% in June, underpinning retail activity. Demand at electronics outlets rose 1.1% in the biggest such gain since September, while department store and eatery sales also rose. But purchases of food, home furnishings and clothing all dropped. Gasoline station sales also posted a 1.8% decline in sales, reflecting a plunge in prices of 3% during the month.
Despite more seasonable weather and solid performance in the housing market, building materials sales were flat. Offsetting the weaker-than-expected June numbers, May sales were revised higher, rising 0.4% for both total and ex-auto retail and food service sales.
Sales for the month were originally reported up 0.1% and up 0.3% ex-automobiles.

CONSUMERS CONTINUE TO SPEND
Despite high debt burdens, lackluster stock prices and increasing layoffs, consumers have continued to spend this year, with retail sales posting just one monthly drop in the first half. Responsible for two-thirds of gross domestic product, such outlays are key to economic performance. GDP grew just 1.2% in the first quarter and may have stagnated in the second.
The Federal Reserve has slashed interest rates 2.75 percentage points since the start of the year in an attempt to avert a downturn. Officials next meet Aug. 21 and data such as Friday's will be key to whether they ease monetary policy further.
While pessimists fear rising unemployment and the need to repay debt will hamper consumer spending in coming months, the optimists hope that a combination of lower interest rates, $38 billion in tax cut refunds this summer and falling energy prices will prolong a spending spree.

WHAT WAS EXPECTED
The June sales data was within the range of private estimates for overall sales, which ran from flat to up 0.7%. Non-automotive sales were seen in a range from down 0.3% to up 0.7%.

OTHER DETAILS, HISTORICALS
--June retail sales rose to a seasonally adjusted $292.897 billion. Sales were up 4.0% versus a year earlier.
--Excluding the automotive sector, sales stood at $220.021 billion, up 3.2% from the year-earlier level.