May Retail Sales Rise 0.1%, Weaker Than Expected | Old North State Wealth News
Connect with us

Economy

May retail sales rise 0.1%, weaker than expected

Published

on

A worker assists with check-out at a Costco store in Teterboro, New Jersey, US, on Wednesday, Feb. 28, 2024. 

Stephanie Keith | Bloomberg | Getty Images

Retail spending was weaker than expected in May as consumers continued to wrestle with stubbornly higher levels of inflation.

Sales rose just 0.1% on the month, one-tenth of a percentage point below the Dow Jones estimate, according to a e Commerce Department’s report Tuesday that is adjusted for seasonality but not inflation. However, the result was slightly better than the downwardly revised 0.2% decline In April.

On a year-over-year basis, sales rose 2.3%.

The sales number was worse when excluding autos, with a decline of 0.1% against the estimate for a 0.2% increase.

Declining gas prices helped hurt receipts at gas stations, which reported a 2.% monthly decline. That was offset somewhat by a 2.8% increase at sports goods, music and book stores. Online outlets reported a 0.8% increase, while bars and restaurants saw a 0.4% decline.

Stock market futures were around flat following the report while Treasury yields declined.

The report comes with investors on edge about the direction of the economy and what that will mean for the future of monetary policy at the Federal Reserve. Consumer spending is responsible for about two-thirds of all economic activity, so any weakness could signal both a retrenchment in growth while also pushing the Fed to begin cutting interest rates.

Market pricing is pointing to the equivalent of two interest rate reductions this year of a quarter percentage point each, though Fed officials at their meeting last week indicated the likelihood of just one. Following the retail data, traders in the fed funds futures market upped their bets that the Fed would be easing, even pricing in about a 23% chance of three cuts this year, according to the CME Group’s FedWatch gauge.

This is breaking news. Please check back for updates.

Read the full article here

Trending

Copyright © 2024 ONSWM News. Content posted on the Old North State Wealth News page was developed and produced by a third party news aggregation service. Old North State Wealth Management is not affiliated with the news aggregation service. The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date the articles were published. The information presented is not an offer to buy or sell, or a solicitation of any offer to buy or sell, any of the securities discussed.