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%.
UPS is gearing up for a mass hiring event that could help a critical labor shortage affecting the U.S. across all industries. Jon Bowers, human resources director with UPS, joined Cheddar News to discuss the company's job fair known as 'Brown Friday,' which is slated to take place Nov. 3 and Nov. 4, ahead of the holiday season.
A Missouri jury found the National Association of Realtors and other brokerages liable for nearly $1.8 billion in damages on Tuesday. The jury found the parties conspired to keep commissions for home sales artificially high and the lawsuit looked at sales that took place between April of 2015 through June of 2022.
The country’s largest Christian university is being fined $37.7 million by the federal government amid accusations that it misled students about the cost of its graduate programs.
