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·17d

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.

Overview

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  • 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.

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Analysis

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Emphasizes a significant decline in retail sales as Americans become more cautious in spending.

Overall, there was a decrease in sales across various sectors, with car sales dropping by 3.5% and home and garden centers experiencing a 2.7% decrease, while electronics and appliance stores and grocery stores also saw declines.

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2 articles
100%

Sales increased across various sectors, with online retailers seeing a 0.9% rise, clothing stores experiencing a 0.8% increase, and furniture stores showing a 1.2% growth.

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2 articles
100%

Retail sales, excluding auto purchases, decreased by 0.3%.

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3 articles
67%

Retail sales decreased by 0.9% in May following a 0.1% decline in April, according to the Commerce Department.

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4 articles
50%

Articles (4)

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Center (2)

"…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."

Americans turn cautious and retail sales slide after a spring spending surge to beat tariffs
Associated PressAssociated Press·17d·
Center
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FAQ

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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

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