Retail Sales Down in May
Retail sales declined more than expected in May, pulled down
in part by weaker sales at department stores and non-store retailers,
according to data from the U.S. Commerce Department.
U.S. retail sales fell by 0.5 percent, while sales excluding
autos declined by 0.2 percent. Core retail sales excluding
autos and gasoline were flat.
“Much of the weakness in consumer spending over the
month was related to falling gas prices and the lifting of
auto dealer incentives, but seasonal adjustment factors also
played havoc with the numbers,” said Craig Wright, vice
president and chief economist at RBC Financial Group.
Other data indicated a rebound in consumer confidence in
June, suggesting stronger retail sales. According to the June
RBC Consumer Attitudes and Spending by Household Index for
June, one-third of consumers (33 percent) reported increased
comfort making a major purchase, such as a home versus six
months ago. A similar number (39 percent) said they were more
comfortable about making less costly purchases, namely household
items. Additionally, 37 percent said their personal financial
situation would be stronger in six months.
Strengthening consumer confidence in current economic conditions
and job security moved the index to 84 in June, a noteworthy
increase from the 18-month low score of 78.2 reported in May.
The RBC CASH Index, conducted by Ipsos Public Affairs (Washington),
is a monthly national survey of consumer attitudes on the
current and future state of local economies, personal financial
situations, savings and confidence to make large investments.
[August 2005 PET AGE]
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