Retail sales increase for 11th straight month

National Retail Federation reports retail sales rose for the 11th straight month in May. However, rising gas prices and a weak labor market slowed consumer spending, with only a few retail sectors reporting growth. May’s retail industry sales, which exclude automobiles, gas stations and restaurants, increased 0.1% seasonally adjusted from April and 5% unadjusted year-over-year.
“Retailers are not surprised to see the momentum in consumer spending slowing, given the lackluster performance of employment and housing,” said NRF president and CEO Matthew Shay. “Long-term economic growth will be reliant on Congress and the Administration’s ability to support policies that promote private sector growth.”
“Though consumers are spending cautiously, we are not seeing them cut out new purchases completely, signaling there is a distinct appetite to spend if economic conditions let them,” said NRF chief economist Jack Kleinhenz.”
May retail sales released by the U.S. Commerce Dept. show total retail sales, which include non-general merchandise categories such as autos, gasoline stations and restaurants, decreased 0.2% seasonally adjusted over April and increased 7.8% unadjusted year-over-year.