Retail sales dip, Fed modifies forecast

Retail sales dip, Fed modifies forecast    A U.S. Commerce Department report that retail sales fell in May combined with a muted note from the Federal Reserve increased jitters Wednesday that the economy is losing steam going into the second half of the year.
   Retail sales for June, excluding autos, fell 0.6 percent from May levels, according to the Commerce Department. Sales were up 5 percent from June 2009.
   Persistent high unemployment continues to be a drag on retail sales and the economy as fewer people have money to spend.
   Last week the government reported a net loss of 125,000 jobs as the Census Bureau eliminated temporary census takers, overwhelming the 83,000 jobs created by the private sector.
   On Wednesday, the Federal Reserve released minutes of its June 22-23 policy meeting in which it lowered expectations for growth and inflation this year. It said growth this year would be about 3 percent to 3.5 percent, down from its April forecast of 3.2 percent to 3.7 percent.
   The consensus among Fed governors is that the economy will now take five to six years to fully recover to the levels seen prior to the recession.