NEW YORK — Cutting their inventory helped both Wal-Mart Stores Inc. and Kohl's Inc. earn more in the second quarter than Wall Street expected, but neither retailer sees consumer spending rebounding in the crucial coming months.

They said yesterday that they're preparing for American consumers' newly adopted frugality to be the new reality.

Wal-Mart saw an unexpected drop in U.S. same-store sales for the quarter. Same-store sales is a key comparison of business at the same location a year later.

Wal-Mart, the world's largest retailer, noted that its financially strained customers keep buying less-expensive products and smaller sizes. Customers also are paying for more of their purchases in cash or with debit cards instead of credit cards, said Tom Schoewe, Wal-Mart's chief financial officer.

BLEAK RETAIL SALES COULD STALL RECOVERY

WASHINGTON — A bleak report on retail sales yesterday reinforced a nagging worry among economists: That shoppers won't spend enough to help a recovery take hold.

Sales fell 0.1 percent, the Commerce Department said, after two months of modest gains. Economists had expected a 0.7 percent increase. Excluding autos, which got a boost from the Cash for Clunkers rebate program, sales fell 0.6 percent, much worse than predicted.

The figures serve as a reality check for an economy that lately has appeared poised to emerge from recession and grow again. Consumer spending powers about 70 percent of economic activity.

EVEN BUDWEISER FEELING THE PINCH

BRUSSELS — Anheuser-Busch InBev said second-quarter profit rose 13 percent to $1.1 billion, helped by sales of stakes in brewing companies, but cautioned that the recession is flattening beer consumption in key markets worldwide.

The owner of Budweiser, the world's best-selling beer — and some 300 other brands — said its profit compared with a $850 million profit in the same period a year earlier.

Still, ABInbev reported a 1.1 percent drop in global sales in the second quarter.

FORD NOW ON A ROLL WITH FOCUS, ESCAPE

DEARBORN, Mich. — Ford said yesterday it will build more of its popular Focus and Escape models and boost total vehicle production later this year to help dealers restock depleted showrooms.

Ford Motor Co. needs to keep up with demand for its Focus compact and Escape crossover, both top sellers under the federal government's Cash for Clunkers program.

Ford also wants to maintain a sufficient level of cars and trucks so its dealers won't run short on hot models during the final months of the year.

Cash for Clunkers, which kicked off last month and has revived industry sales for the moment, offers rebates of up to $4,500 to entice drivers to trade in older gas guzzlers for more fuel-efficient vehicles.

Ford's overall vehicle production will be 2 percent higher than it expected in the third quarter.

OSTEOPOROSIS DRUG CONVINCES FDA

WASHINGTON — A federal health panel said a highly anticipated bone drug from Amgen benefits patients with osteoporosis, but should not be used to try to prevent the disease because of long-term safety questions.

Food and Drug Administration experts unanimously agreed that Amgen's injectable drug denosumab helps prevent bone fractures in women with postmenopausal osteoporosis. But panelists said the drug should only be used by patients who face the greatest risk of fractures.

In a separate 12-3 vote, the panel recommended that the drug not be used as a preventive measure for women with low bone density.