United States: Retail sales deteriorate in May
Retail sales dropped 1.3% month-on-month in seasonally-adjusted terms in May (April: +0.9% mom). The figure was largely due to a contraction in motor vehicle and parts dealers sales. In addition, general merchandise stores sales contracted at a steeper rate. Lastly, non-store retailers sales decreased at a sharper rate, while gasoline stations sales gained momentum.
On an annual basis, retail sales rose at a more moderate pace of 28.1% in May (April: +53.4% yoy). Meanwhile, annual average retail sales growth rose to 11.8% in May (April: +9.0%). This signals an improving trend in the retail trade sector.
Commenting on May’s print, analysts at Oxford Economics stated:
“Satiated demand and higher prices for goods weighed on consumers’ buying attitudes. While upcoming retail sales reports will likely have a similar blueprint to the May release, they shouldn’t be viewed as a sign of wary households but rather a sign that vaccinated consumers are rotating their spending into services.”