Retailers report drop in sales in August

? Retail sales slid in August as people steered away from buying cars and shoppers kept a close eye on their spending after splurging in July.

The Commerce Department reported retail sales fell by 0.3 percent in August, following a 0.8 percent gain the previous month. In recent months, retail sales have exhibited a seesaw pattern with sales going up one month and down the next.

“August represented another notch in a schizophrenic summer for retail sales,” said Rosalind Wells, chief economist at the National Retail Federation.

The decline in overall retail sales in August mostly reflected a 1.9 percent drop in automobile sales, which had risen 2.2 percent in July. Paul Taylor, chief economist at the National Automobile Dealers Assn., said the decline came despite incentives and promotions to lure buyers.

“The soft spot in the economy made consumers less willing to take on a new vehicle purchase,” he said.