US retail sales increased in May
US retail sales forecast in April under It increased. Sales increased by 0.4 percent, according to data from the Ministry of Commerce. Expectations were for an increase of 0.8 percent.
The previous month’s data was revised down from 1 percent to 0.7 percent.
Excluding automobiles, sales increased by 0.4 percent in line with expectations. Last month, 7 out of 13 retail categories rose. Excluding automobiles and gasoline, sales increased by 0.6 percent.
Retail sales, which constitute the majority of consumer expenditures, also give important signals about the strength of the country’s economy.
The Fed’s rate hikes to combat high inflation caused the economy to slow down and consumers reduced their large-scale spending.
Data released last week showed that inflation recorded the slowest increase since 2021, but despite this slowdown, inflation still remains well above the Fed’s 2 percent target, affecting the purchasing power of consumers negatively.