US Retail Sales Decline Amid Cautious Consumer Spending
US retail sales fell by 0.9% in May, reflecting a shift in consumer behavior after a previous surge to avoid tariffs.
Subscribe to unlock this story
We really don't like cutting you off, but you've reached your monthly limit. At just $5/month, subscriptions are how we keep this project going. Start your free 7-day trial today!
Get StartedHave an account? Sign in
Overview
- In May, US retail sales decreased by 0.9%, following a 0.1% decline in April, signaling cautious consumer spending.
- Excluding auto sales, retail sales dropped by 0.3%, as consumers became more conservative after earlier spending spikes.
- Car sales fell by 3.5%, while home and garden center sales decreased by 2.7%, contributing to the overall decline in retail.
- Despite declines in several sectors, online retailers, clothing stores, and furniture stores saw increases in sales.
- The cautious spending behavior is attributed to consumers reacting to potential tariffs, leading to a shift in purchasing patterns.
Report issue
Read both sides in 5 minutes each day
Analysis
Emphasizes a significant decline in retail sales as Americans become more cautious in spending.
"The sales drop comes after sharp declines in consumer confidence this year."
ABC News"Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump’s sweeping tariffs on nearly all imports."
Associated PressArticles (4)
FAQ
The decline in US retail sales in May was attributed to decreased motor vehicle purchases and lower receipts at service stations due to a decline in gasoline prices, as well as cautious consumer spending ahead of potential tariff-related price hikes.
Consumer confidence has sharply declined this year, which likely contributed to cautious spending behavior and the subsequent drop in retail sales.
Online retailers, clothing stores, and furniture stores saw increases in sales despite the overall decline.
History
- This story does not have any previous versions.