In May, consumer spending saw a slight uptick as retail sales rose by 0.1%, falling below economists' projections. This marginal increase comes amidst lingering concerns over high inflation and interest rates, which have tempered consumer spending habits. April sales were also revised downward, showing a 0.2% decline from the initial estimate of being unchanged. The trend in retail sales has been fluctuating in recent months, with a 0.6% increase in March and a 0.9% rise in February, following a 1.1% decline in January attributed in part to adverse weather conditions.
Excluding gas prices and auto sales, retail sales showed a similar modest increase. When excluding sales from gasoline, which has seen a decline in prices, sales were up by 0.3%. The retail sales data, however, does not encompass certain consumer expenditures such as travel and lodging. Notably, sales at restaurants, the sole service category tracked in the report, fell by 0.4% in May.
