US retail sales in May saw their sharpest monthly decline since November, weighed down by slower auto sales and lower oil prices, the government said today.
The Commerce Department said overall retail sales slid 0.9 per cent in May and a smaller 0.4 per cent excluding autos. The drops were larger than Wall Street analysts had been projecting and cast some doubt on the strength of consumer demand entering the summer. Consumer spending makes up two-thirds of economic activity.
Commerce said the overall decline was the largest since November's 2.6 per cent drop. Declines were seen in various categories throughout the May report. Sales at auto and parts dealers dropped 2.5 per cent while gas station sales fell a hefty 3.1 per cent, their biggest decline since December, largely reflecting lower oil prices in the month.
April retail sales were unrevised at a 1.2 per cent gain overall and changed to a 1.1 per cent increase excluding autos. Initially April had been reported as a 1 per cent advance outside of autos.
Analysts had expected May sales to fall 0.3 per cent overall, but to have posted a 0.3 per cent rise outside of the automotive sector.