Retail sales ended the second quarter on a soft note, indicating that economic growth and acceleration has weakened, according to the National Retail Federation (NRF).

Core retail sales—excluding autos, building materials and fuel—increased 0.6% seasonally adjusted and increased 3% unadjusted year-over-year in June. Including those categories, last month's retail sales rose 0.4% and 5.7% unadjusted year-over-year, U.S. Department of Commerce figures showed today.

Book and music, sporting goods and hobby stores' sales increased 0.7% seasonally adjusted month-to-month, and rose 0.2% unadjusted year-over-year, NRF said.

"Consumers remain wary," NRF President and CEO Matthew Shay said. "Even though healthy home prices and stock values are helping to improve confidence and spending, stagnantly high unemployment, higher taxes and lingering policy uncertainty continue to keep shoppers and economic growth at bay. The recovery is solid and good, but its pace remains measured and modest."

NRF Chief Economist Jack Kleinhenz noted that "the consumer economy is improving."

"But growth rates and retail sales will remain reserved for the foreseeable future," he said. "U.S. households have adjusted their spending to a slow-growth economy. With employment and consumer confidence improving, we expect that the second half will be better than the first."

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