U.S. Retail Sales Fell in May as Inflation Bites
2022.06.15 15:56
By Geoffrey Smith
Investing.com — U.S. retail sales fell for the first time in five months in May, suggesting that the economy is cooling faster than thought as the Federal Reserve tightens monetary policy.
Retail sales fell 0.3%, while core retail sales, which strip out some of the index’s more volatile components rose 0.5%, less than the 0.8% expected. April data for both series were also revised down.
The report said that sales growth slowed to 8.1% on the year. As the data are not adjusted for price changes, that suggests that retail sales volumes fell from a year earlier, given that annual inflation ran at an annual rate of 8.6% in May.
Spending weakened conspicuously in big ticket and durable goods sectors, with sales of autos and car parts falling 3.5%, furniture sales falling 0.9% and sales of electronics and other appliances falling 1.3%.
