Spending at U.S. retailers was sluggish in May outside of a jump in auto sales, a potentially worrisome sign for the economy even as spending on goods continues to rebound from a weak stretch over the winter.
Retail and food sales rose 0.3% from the previous month to a seasonally adjusted $437.65 billion, the Commerce Department said Thursday. Excluding automotive purchases, sales rose 0.1% from April. Excluding both autos and gasoline, sales were flat in May.
"Goods consumption is still on track for a fairly strong rebound" in the second quarter after a weak start to the year, "although not as strong as seemed likely before this report," High Frequency Economics economist Jim O'Sullivan said in a note to clients.
Economists surveyed by The Wall Street Journal had expected stronger growth in May, predicting overall retail sales would rise 0.7% and sales excluding autos would rise 0.4%.
Sales in April, however, were stronger than initially reported. Total sales rose 0.5% from March, revised up from the initial estimate of a 0.1% increase, and sales excluding autos rose 0.4% instead of the initial flat reading.
