May Retail Sales Fall Short, Suggest Weakening Consumer

U.S. retail sales grew 0.1% on a month-over-month basis in May, falling short of estimates for 0.3% growth and hinting at weakness in consumer spending.

Core retail sales declined 0.1% on a month-over-month basis in May, against estimates of 0.2% growth.

Nonstore Retailers: This category showed significant growth, with a 6.8% increase over the previous year, highlighting the ongoing shift towards online shopping.

Food Services and Drinking Places: Sales in this sector increased by 3.8% from May 2023, suggesting a recovery and growth in hospitality and dining out.

Revised Figures: The data for April 2024 was revised, showing a decrease of 0.2% from the previous estimates of being virtually unchanged.

According to the CME Group’s FedWatch tool, 91.7% of traders currently expect the Federal Reserve to leave interest rates unchanged at its July meeting.

This story will be updated.

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