Retail sales growth slows
The latest numbers point to weakness in consumer spending that could get worse in coming months, analysts say.
NEW YORK (CNNMoney.com) - Retail sales barely edged higher in May as rising gasoline prices helped counter sluggish consumer spending in some other retail categories. The Census Bureau said Tuesday that sales overall rose just 0.1 percent last month, less than the revised 0.8 percent increase in for April. Economists surveyed by Briefing.com had forecast retail sales to be flat. Excluding auto sales, retail sales rose 0.5 percent, in line with expectations. Ex-auto sales were up a revised 0.8 percent the previous month. Ex-auto sales were originally reported to have increased 0.7 percent in April. "This was basically a ho-hum report," said Michael Niemira, chief economist and director of research with the International Council of Shopping Centers (ICSC). "What you see is what you got. At the same time, the gas effect was both positive and negative last month." According to the report, retail gasoline sales jumped 1.9 percent, boosted by this year's run-up in prices at the pump. But automobile sales fell 1.6 percent in May. "The weakness in auto sales had some positive effect overall because it would've led to dollars flowing away from car purchases into other areas," Niemira said. Furniture sales sagged 0.5 percent as did sales of building materials, which fell 0.4 percent. Among the category gainers, sales at sporting goods, books and music stores rose 0.7 percent, electronics sales increased 0.4 percent and food and beverage sales rose 0.6 percent. Department stores sales saw only a marginal increase of 0.1 percent last month, while general merchandise sales increased 0.3 percent. "Over the broader horizon, there is some moderation in spending," Niemira said. "We could see more weakness in June and beyond." Ian Shepherdson, chief U.S. economist with High Frequency Economics, agreed. "There has been something of a slowdown [last month], but there is as yet no definitive evidence of a big change in consumer behavior," Shepherdson wrote in a note Tuesday. "We expect to see that over the next few months as the full effect of the surge in gas prices and the plunge in stock prices works through." ______________ |
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