Retail sales in the United States fell short of expectations for the second consecutive month in May, driven by a notable decline in gas station sales, according to government data released on Tuesday. The April figures were also revised downward.
The report indicates that consumer spending is weaker than anticipated, a development welcomed by the Federal Reserve in its efforts to combat persistent inflation by maintaining higher interest rates.
Total retail sales reached $703.1 billion in May, marking a slight 0.1 percent increase from April’s revised 0.2 percent decline, the Commerce Department reported.
The data missed market forecasts, which had anticipated a 0.3 percent rise, as reported by Briefing.com. However, compared to a year ago, retail sales showed a 2.3 percent increase.
The sharpest monthly decrease was observed at gas stations, where sales fell by 2.2 percent. Meanwhile, furniture and home furnishing stores saw a 1.1 percent decline from April.
Some sectors did experience growth, particularly in leisure-related businesses such as sporting goods and musical instrument stores, which recorded a 2.8 percent increase in monthly sales.