Consumers barely increased spending in May from April as still high inflation and high interest rates curbed spending, the Associated Press reports.
Retail sales rose 0.1% in May, below the pace that economists projected, according to the Commerce Department, and April sales were revised downward — a 0.2% decline, from unchanged. Sales rose 0.6% in March and 0.9% in February.
Excluding gas prices and auto sales, retail sales rose the same amount. Excluding sales from gasoline, whose prices have been falling, sales were up 0.3%.
The retail sales data offers only a partial look at consumer spending because it excludes things like travel and lodging; however, at restaurants, the lone service category tracked in the monthly retail sales report, sales fell 0.4% in May.
Sales at clothing and accessory stores rose 0.9%; electronics and appliance stores posted a 0.4% gain; online sales rose 0.8%; business at building material and garden supplies fell 0.8%; and sales at gas stations were down 2.2%.
The national average price for a gallon of unleaded gasoline was $3.45 as of Monday; a month ago, it was $3.59, AAA said.
Retail executives say shoppers are still buying, but they’re being choosy about what they spend their money on.
