Summary Box: Retail sales post gain in July, driven by higher auto sales

Summary Box: Auto sales boost weak retail sector

SALES UP: Retail sales rose 0.4 percent in July, the first increase after two months of declines. The strength came from a big jump in auto sales and higher gasoline prices.

WIDESPREAD DECLINES: Outside of autos, a lot of retailers saw sales decline with demand dropping at department stores, furniture stores, appliance stores and specialty clothing stores.

OUTLOOK: The worry is that consumer spending, which accounts for 70 percent of economic activity, could slow further in the second half of this year as households continue to be battered by high unemployment.