WASHINGTON, September 12, 2008 (AFP) - US retail sales unexpectedly fell 0.3 percent in August, with strong automobile sales helping offset a steeper decline, the Commerce Department said Friday.

The consensus analyst forecast was for a 0.3 percent gain.

Excluding auto sales, August retail sales were off 0.7 percent, sharply exceeding the market forecast of a drop of 0.2 percent.

The Commerce Department reported an upward revision of July retail sales to a rise of 0.1 percent instead of the decline of 0.1 percent initially estimated. Excluding autos, sales were up 0.7 percent instead of 0.4 percent.