WASHINGTON (AP) -- Retail sales delivered the weakest performance in five months in July as shoppers shunned autos while they paid more for gas.

With the mass mailings of $92 billion in rebate checks now just a memory, there is concern the fragile economy could slow even more in the second half of this year.

The Commerce Department reported Wednesday that retail sales fell 0.1 percent last month, the first decline since a 0.5 percent tumble in February. It was a worse showing than the flat reading economists had been expecting and followed a revised but still weak 0.3 percent reading for June.

Analysts said retail sales would have been more feeble without the $92 billion in rebate payments the government sent out in May, June and July. Those checks helped to counter plunging home prices, rising unemployment and soaring gasoline prices.

The bulk mailings are now over, though, leaving economists worried about what will happen next to spending.

"Cautious and uncertain consumers are watching their wallets and with the back-to-school shopping season under way, that does not bode well for retailers," said Joel Naroff, chief economist at Naroff Economic Advisors.

Department store operator Macy's Inc. said Wednesday that its second-quarter earnings dropped slightly

NEW YORK (AP) -- Macy's Inc. posted a lower second-quarter profit Wednesday and warned that its full-year earnings will be below expectations. That, along with a pared-down outlook from a key supplier and a somber government report on retail sales in July, suggests a persistent slowdown for retailers as they face the critical back-to-school and holiday shopping seasons.

Companies reliant on clothing sales -- like Macy's and supplier Liz Claiborne Inc. -- are having an especially tough time as shoppers focus increasingly on necessities with some exceptions like iPhones. The government's monthly report showed that sales at department stores and other general merchandise stores rose by 0.3 percent last month, just half the 0.6 percent June increase.

"The consumer is still stressed. ... Mall traffic is still down and shows few signs of resuming," said Craig R. Johnson, president of Customer Growth Partners, a retail consulting group, noting that Apple stores at the mall are among the few exceptions. "Back-to-school doesn't mean denims and tops any more. It means iPhones and laptops."

The Macy's and Liz Claiborne results were released as the Commerce Department reported that July's retail sales were the weakest in five months as economic problems from high gas prices to the weaker job market blunted the impact of billions of dollars in government stimulus payments.

Macy's earned $73 million, or 17 cents per share, in the quarter ended Aug. 2, compared with $74 million,