The downside miss for May retail sales amid downward revisions to past data paint a picture of a softening consumer, but weakness appears overstated when considering lower inflation.
Summary We look for a gradual moderation in spending to take hold as the year progresses. Source: U.S. Department of Commerce, U.S. Department of Labor and Wells Fargo Economics Spending skips abeat The May retail sales data are consistent with only a gradual moderation in consumer spending. Retail sales came in a touch soft, rising just 0.1% during the month, and there were also downward revisions to past months' data that leave the level of sales about 0.
For the most part, the retail sales data covers goods consumption, providing only a partial picture of spending, and food services sales tend to be our best indication of the services side of consumption. On a year-to-date basis through May, we estimate inflation-adjusted restaurant sales are now down 2.5%, a poor indication of the leisure side of the economy. Overall, the May retail sales data are consistent with a consumer that is only gradually losing its swagger.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Retail sales barely rise in May as consumers pump the brakes on spendingRetail sales rose just 0.1% in May as the ongoing inflation crisis and high interest rates prompted many Americans to pump the brakes on their spending.
Read more »
Retail sales rise a meager 0.1% in May from April as still high inflation curbs spendingConsumers barely increased spending in May from April as still high inflation and high interest rates curbed spending.
Read more »
Retail sales rise a meager 0.1% in May from April as still high inflation curbs spendingConsumers barely increased spending in May from April as still high inflation and high interest rates curbed spending.
Read more »
US Retail Sales rise 0.1% in May vs. 0.2% expectedRetail Sales in the United States rose 0.1% on a monthly basis in May to $703.1 billion.
Read more »
U.S. retail sales rise at slower than expected pace in MayU.S. retail sales rise at slower than expected pace in May
Read more »
May retail sales rise 0.1%, weaker than expectedRetail sales were expected to rise 0.2% in May, according to the Dow Jones consensus estimate.
Read more »