U.S. retail sales decreased by 0.3 percent in the month of May, the first decline since the end of 2021, according to MarketWatch. Even after adjusting for a 1 percent inflation increase during the month of May, retail sales fell more than 1 percent.
Auto sales were a large part of the decline, and fell by four percent last month, most likely due to a shortage of parts and supply chain woes – not due to a lack of demand. Rising prices due to inflation may also be a deterrent to consumers.
Gas station sales did jump by four percent last month. Other sectors that saw gains included restaurants, which increased sales by 0.7 percent in May. If you exclude car and gas station numbers, then retail sales increased by 0.1 percent last month.
Economist Katherine Judge of CIBC Economics says, according to MarketWatch, “While it’s only one month, this is a sign that higher prices are starting to thwart consumer demand.”
