Retail sales fall for third straight month in June WASHINGTON (Reuters) - U.S. retail sales fell for a third straight month in June as demand slumped for everything from cars and electronics to building materials, a sign the economic recovery is flagging. Retail sales slipped 0.5 percent, the Commerce Department said on Monday. It was the first time sales had dropped in three consecutive months since late 2008, when the economy was still mired in a deep recession. Analysts polled by Reuters had expected retail sales to rise 0.2 percent. "Evidence is increasingly clear that the U.S. economy is slowing," said Jim Baird, an investment strategist at Plante Moran Financial Advisors in Kalamazoo, Michigan. The report adds to a spate of weak economic data that is raising pressure on President Barack Obama ahead of his November reelection bid. Republican challenger Mitt Romney is focusing his campaign on the weak economy that has plagued Obama's presidency. The retail sales report raised hopes the Federal Reserve could launch another bond-buying program to help the economy. U.S. stocks fell and the yield on 10-year government debt declined to an all-time low, reinforcing the view the U.S. economy needs more monetary stimulus. Fed Chairman Ben Bernanke will brief lawmakers on Tuesday and Wednesday on the Fed's view of the economy. Job creation in the United States has slowed dramatically in the last few months as employers worry about a sagging global economy hurt by Europe's snowballing debt crisis. The International Monetary Fund slashed its forecast for global economic growth on Monday, urging European policymakers to take bolder action to stem their crisis and warning that China's economy risks a hard landing. The U.S. factory sector also has shown signs of contraction due to the global slowdown, although on Monday a survey of New York manufacturers perked up in July after a sharp drop-off the month before. The retail data is worrisome because it suggests consumer spending, which drives about two-thirds of the economy, is also sagging. "This is another example of how broader economic uncertainty is having an impact on economic activity," said Eric Fine, managing director of Van Eck G-175 strategies in New York. Separately, a poll showed on Monday that American companies are scaling back plans to hire workers and a rising share of firms feel the European debt crisis is taking a bite out of their sales. Among companies that produce goods rather than provide services, the impact was even greater, with nearly four in five reporting a Europe-driven decline in revenues, according to the poll. The Commerce Department said sales of motor vehicles and parts dropped 0.6 percent last month. Receipts at electronics and appliance stores declined 0.8 percent. Sales of building materials slipped 1.6 percent, while receipts as gasoline stations dropped 1.8 percent. Gasoline prices fell in June, according to the U.S. Energy Information Administration. "The consumer is obviously struggling, not benefiting much from weak gasoline prices," said David Sloan, an economist at 4cast in New York. Excluding autos, sales fell 0.4 percent. A so-called core measure of retail sales, which excludes autos, gasoline and building materials, dropped 0.1 percent. In a separate report, the Commerce Department said U.S. business inventories rose in May as motor vehicle dealers restocked to meet demand, although sales at companies edged lower for the second straight month. Additional reporting by Leah Schnurr and Ryan Vlastelica in New York; Editing by Andrea Ricci