
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 15, 1993                   TAG: 9307150048
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

RETAILERS POST 3RD STRAIGHT GAIN

Retailers rang up a third straight month of increased sales in June, but analysts said gains would remain modest because of the half-speed economic recovery and uncertainty about higher federal taxes.

Sales rose 0.4 percent, to a seasonally adjusted $171.9 billion, following a similar increase in May to $171.2 billion, the Commerce Department reported Wednesday.

"They're not great numbers," said Daryl Delano of Cahners Economics in Newton, Mass. "But nobody expected an awful lot and that's about what they're getting."

David Jones, an economist with Aubrey G. Lanston & Co., a New York securities dealer, predicted consumer spending would improve more when the debate over higher federal taxes ends.

"People are in a better position to pick up spending when the uncertainties in Washington are cleared up," he contended. "People are seeing at least moderate acceleration in real income. They are seeing better balance sheets [and] cash flow."

Automobile dealers posted a 1.2 percent increase after gains of 1.5 percent in May and 3.5 percent in April. Excluding this component, sales were up 0.2 percent.

Sales of furniture, appliances and other household furnishings were up 0.5 percent after inching up 0.1 percent a month earlier.

Sales of non-durable goods increased 0.2 percent, erasing a 0.2 percent decline in May.

Department store sales totaled 0.5 percent more than they did in May, when they rose 0.8 percent. Apparel sales were up 0.8 percent, slightly less than May's 1.1 percent.

Sales at restaurants and bars were up 0.3 percent, recouping half of the 0.6 percent loss a month earlier.

But grocery stores reported sales unchanged after falling 0.2 percent in May. And gasoline sales were down 1 percent after dropping 2.4 percent in May. Some analysts said this reflected falling grocery and gasoline prices, not volume.

Drug-store sales also fell, down 0.4 percent after a 0.3 percent advance a month earlier.

by CNB