Despite the entire clamor about the Obama administration's $3 billion "Cash-for-Clunkers" effort to steer the US economy towards recovery via the auto market route, the retail sales continued to remain listless.

No doubt the scheme has been popular and the initial $1 billion earmarked for it ran out last month; still auto sales jumped only a mere 2.4 percent in July, because of the job uncertainty looming large as well as the inability of the Americans to find finance for new cars!

The 0.1 percent drop in July retail sales was a dramatic downslide from the economists' projections of a 0.7 percent rise, based largely on the apparently overwhelming initial response to the "Clunkers" program.

Commenting on the rather disappointing figures, Paul Dales, of Capital Economics, said: "There is no upward momentum in sales at all and suggests that falling employment, slowing wage growth and limited access to credit are taking their toll on spending. Overall, the retail sales data support our view that households are in no position to drive a decent economic recovery."

In fact, noting that outside of auto sales, retail was down 0.6 percent, a Morgan Stanley economist remarked that "Cash-for-Clunkers" scheme likely took demand away from other sectors - with the temptation of new car purchases leading to cut backs in other areas by many families!