Retail sales fell in May, dragged down by a decline in auto sales and a shift by Americans to spend more on vacations and other services instead of goods.
Total sales dropped a seasonal adjusted 1.3% in May from the month before, the U.S. Commerce Department said Tuesday. Wall Street analysts expected a smaller decline of 0.5%.
Economists expected retail sales to drop last month because of the lack of cars available for sale due to a worldwide shortage of chips, which are needed to power in-car screens and other features. Sales at auto dealerships fell 3.7% last month, according to the Commerce Department.
Another reason for the decrease: As more people become vaccinated and head out more, Americans are spending more of their money on haircuts, trips and other services that are not included in Tuesday's report. Sales fell at furniture, electronics and home building stores last month.
“Consumer spending growth through the rest of the year will shift to services from goods,” wrote PNC chief economist Gus Faucher.
Sales at restaurants rose nearly 2%, according to Tuesday's report. And those seeking a new outfit to go out in helped sales at clothing stores rise 3%.
Dena Jalbert, Head of M&A at Align Advisory, discusses the state of mergers and acquisitions in 2025 and beyond, highlighting key trends and opportunities.
Kim Perell, author and entrepreneur, shares actionable tips and tricks to help current and aspiring entrepreneurs kick off 2026 with confidence and momentum.
Emera CEO Scott Balfour discusses soaring energy demand, AI-driven grid challenges, clean-power investments, and how the company is building a resilient future.
JB Mackenzie discusses Robinhood’s new entertainment prediction markets, letting users engage with pop culture, award shows, and more through low-stakes bets.
Rhett Power shares his startup journey, lessons from his early years and insights from his book on overcoming negative self-talk to lead with confidence.
Despite inflation, Americans aren’t giving up the gym. Crunch Fitness CEO Jim Rowley discusses strong growth, value-driven expansion and what the future holds.
Home prices far outpacing incomes, low inventory, and higher living costs are reshaping the market. WSJ’s Veronica Dagher breaks down the challenges ahead.
As commercial options tighten, more travelers are turning to private aviation. Wheels Up CEO George Mattson breaks down capacity and demand challenges.
Layoffs, hiring slowdowns, and shifting skill demands dominate this year’s job talk. LinkedIn’s Kory Kantenga explains what workers should watch for next.
