US Retail Sales

SOURCE finance.yahoo.com
US retail sales barely rose in May, pointing to greater financial strain among consumers. Retail purchases increased 0.1% after a downward revision in prior months. Services consumption growth is slowing, and consumer confidence is declining. The Federal Reserve may lower interest rates soon based on softer consumer and producer prices.

Key Points

  • Retail sales rose 0.1% in May.
  • Services consumption growth is slowing.
  • Consumer confidence is declining.
  • Federal Reserve may lower interest rates soon.
  • Control-group sales climbed 0.4% in May.

Pros

  • Retail purchases increased slightly in May.
  • Control-group sales used to calculate GDP climbed 0.4% in May.

Cons

  • Five out of 13 categories tracked by the Commerce Department showed declines.
  • Consumer spending is downshifting due to inflation, cooling job market, and financial stress.