In May, retail sales in the United States grew by a modest 0.1%, falling short of the expected 0.2% increase, as reported by the Commerce Department on Tuesday. This figure, adjusted for seasonal changes but not inflation, marks a slight improvement from April's revised 0.2% decline.
The year-over-year comparison shows a 2.3% increase in retail sales, but excluding auto sales, there was a 0.1% decline compared to an anticipated 0.2% rise. The decline in non-auto sales was driven by a notable 2.2% drop in receipts at gas stations, reflecting moderating fuel prices during the period.
Despite the overall modest increase, certain sectors saw gains. Sports goods, music, and book stores reported a 2.8% increase, while online retail sales rose by 0.8%. Conversely, bars, restaurants, and furniture stores experienced declines in sales.
The report's release coincides with cautious market sentiment, with investors closely watching economic indicators for potential implications on Federal Reserve policy. Given the significant role of consumer spending in the economy, any signs of weakness could influence Fed decisions on interest rates amidst ongoing inflation concerns.
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