


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