Washington
CNN
—
Sales at US retailers rose last month at an unexpectedly weak pace as US consumers continue to deal with still-high inflation and elevated interest rates.
Retail sales rose just 0.1% in May from the prior month, the Commerce Department reported Tuesday. That’s better than April’s downwardly revised 0.2% decline but below the 0.3% gain economists projected in a FactSet poll. The figures are adjusted for seasonal swings but not inflation.
Sales declined the most at gas stations, down 2.2% in May. Excluding that, sales were up by 0.3% last month. American shoppers also pulled back on purchases at furniture stores (-1.1%) and shops that sell building materials and garden equipment (-0.8%).
Meanwhile, spending was the strongest at specialty stores that sell sporting goods, books, and musical instruments, which jumped by 2.8% last month.
Monthly retail sales have increased four times over the past six months through May, but figures for April and March were revised lower, the Commerce Department said Tuesday.
Inflation is down from the 40-year highs of two years ago, but it remains elevated. Meanwhile, interest rates are at their highest in nearly a quarter century after the Federal Reserve launched an aggressive rate-hiking campaign in 2022 to rein in price hikes. Household savings accumulated during the Covid-19 pandemic are dwindling, and may have already been exhausted.
This story is developing and will be updated.
