WASHINGTON - The National Retail Federation announced last week that the nation's retail sales slowed last month, evidence of increasing consumer fear. May retail industry sales (which exclude automobiles, gas stations, and restaurants) dipped 1.4 percent seasonally adjusted over April and rose 2.7 percent unadjusted year-over-year.

Retail sales data released by the U.S. Commerce Department revealed that total retail sales (which include autos, gasoline stations, and restaurants) decreased 1.2 percent seasonally adjusted over April and increased 6.3 percent unadjusted year-over-year.

"May retail sales results represent a reminder of the uncertainly that still exists in the economy," said NRF President and CEO Matt Shay. "The road to recovery is paved with caution as consumers remain concerned about key indicators such as employment and housing."

Despite the drop, though, the NRF sounded an optimistic tone. "Even though May sales were not as strong as previous months, we remain encouraged by the steady pace of the economic recovery," said Rosalind Wells, Chief Economist for NRF. "Ultimately consumer momentum will be tied to our economy??s ability to add private sector jobs."

Areas reporting sales increases include furniture and home furnishings stores (1.0 percent), sporting goods, hobby, book, and music stores (0.4 percent), and electronics and appliance stores (0.6 percent).