US retail sales climbed 1.8 pct in July as auto sales enjoyed the strongest growth in nearly four years, the Commerce Department said Excluding the 6.7 pct rise in auto sales, retail sales increased 0.3 pct in July The seasonally adjusted figures were slightly weaker than expected by Wall Street economists. According to the MarketWatch survey, retail sales were expected to rise 1.9 pct, with ex-auto sales up 0.6 pct Sales in May were unrevised at a 0.3 pct decline, while June's sales were unrevised at a 1.7 pct gain. Retail sales are now up 10.3 pct in the past year, the fastest gain in 11 years. Excluding autos, sales are up 8.1 pct year-over-year Retail sales represent about half of consumer spending, which in turn accounts for two thirds of all final economic activity. Consumer spending has been growing faster than income gains. The personal savings rate fell to 0 pct in June and economists believe it is likely to fall into negative territory in July for just the second time since the Great Depression years, despite healthy job growth and wage gains. Automakers boosted sales in July by offering the most generous sales incentives ever. The 6.7 pct gain was the most since the 25.7 pct increase in October 2001 Gasoline sales were also very strong in July, growing 2.5 pct, largely because of higher pump prices Excluding both autos and gas, retail sales were flat in July Sales were mixed elsewhere in the retail sector Sales at furniture stores dropped 1.3 pct, while sales at building materials and hardware stores sank 0.4 pct. Sales at electronics and appliance stores increased 1 pct Sales were weak in the malls. Department store sales fell 1 pct, while clothing store sales dropped 0.5 pct Sales at leisure-time stores such as sporting goods and books rose 0.5 pct. Sales at health and personal care stores increased 0.6 pct. Grocery store sales fell 0.1 pct, while restaurant and bar sales increased 0.2 pct