Retail sales in the United States fell in May, delivering a downside surprise as analysts generally predicted solid spending by American consumers, whose willingness to keep shopping is key to averting what a growing number of economists warn is a looming recession.
The Commerce Department said on June 15 that U.S. retail sales fell 0.3 percent last month, down from April’s revised 0.7 percent growth and below consensus forecasts for a 0.2 percent advance.
The retail sales dip was driven mostly by a 3.5 percent decline in auto purchases, with significant contributions from declines in electronics (minus 1.3 percent) and furniture (minus 0.9 percent).
May’s drop in retail sales is the first so far this year and comes as the Federal Reserve has embarked on an aggressive tightening cycle in a bid to cool runaway inflation. The coming rate hikes are likely to further challenge the American consumer, whose purchasing power has been eroded by soaring prices….