Though retail sales rose slightly in August, experts are concerned that the housing slump and financial market turbulence could cause spending to falter as consumers lose confidence. Excluding the big jump in automobile sales last month, retail sales had the poorest showing in nearly a year, the Associated Press reported.

According to the Commerce Department’s Friday report, retail sales increased 0.3 percent in August, compared with 0.5 percent in July. This was led by a 2.8 percent jump in auto sales, the biggest increase in a year. However, excluding autos, retail sales fell by 0.4 percent, due in part to a 2.4 percent drop in sales at gasoline stations.

Sales at department and general merchandise stores increased 0.3 percent from back-to-school sales and furniture store sales rose by 0.5 percent, while hardware store sales declined by 1 percent and sales at specialty clothing stores fell by 0.1 percent.

A separate report also showed that industrial production in August increased by only 0.2 percent, the poorest performance in three months, which reflected a 0.3 percent drop in output at U.S. factories.

Economists worry that consumer spending, which accounts for two-thirds of the economy, could falter as a credit crunch and rising gasoline prices tighten spending. These reports could encourage the Federal Reserve to cut a key interest rate for the first time in four years to help boost the economy.