by David Gura

Consumers tightened their purse strings in May, as retail sales dropped in the U.S., NPR's John Ydstie reports.

According to new data, released by the Department of Commerce, consumer purhcases fell 1.2 percent last month.

"Today's data reflects what we know to be true: uncertainty remains and there is work left to do to ensure long-term economic stability," U.S. Commerce Secretary Gary Locke said in a statement.

Overall, consumer spending has increased modestly this quarter, and as Americans continue to cut down their debt, financial positions will improve. That will help spur future economic growth and help put people back to work.

Economists had expected sales to rise.

"It was the first drop in retail sales since last September, and it calls into question the strength of the recovery," Ydstie says.

The government data showed sales falling at auto dealerships.  That contradicts private auto industry figures that showed sales rising.

Sales at stores that specialize in building materials plunged 9.3 percent.  According to Ydstie, that may reflect the end of government rebates for purchase of energy-efficient products.

Slow job growth has left the U.S. unemployment rate near 10 percent.  Some 15 million consumers aren't getting regular paychecks.

Enough bad news.  Anything good?

A separate report shows consumer confidence rising more than expected.