According to the latest Census Bureau statistics, retail and food service sales in the United States are expected to have decreased by 0.3% month over month in May to $672.9 billion. FactSet polled economists and predicted that retail sales would grow 0.2 percent this month.
The slowdown seems to be caused mostly by a drop in sales of automobiles. Total expenditure in May increased by 0.5 percent from April, excluding motor vehicle and component purchases. Sales of vehicles and parts were down by 3.5 percent on their own.
Other high-ticket items, such as furniture and electronics, saw a decline in spending as well.
An analyst at BMO Capital Markets noted that “this disappointment is considerably more severe when taking into consideration May’s inflation print.
In May, the Consumer Price Index rose by 1%, compared to a 0.3% rise in April. The annual CPI jumped to 8.6%, the highest level in 40 years.
The post For the First Time in Five Months, Retail Sales in the United States Fell in May, as Rising Prices Forced Shoppers to Reconsider Large-ticket Purchases. appeared first on Best Stocks.
