Retail sales fell in May, dragged down by declines in gas and auto purchases during the second month that a wide array of President Trump’s tariffs were in effect.
Headline retail sales declined 0.9% in May, surpassing economists’ expectations for a 0.6% decline month on month. By comparison, sales decreased 0.1% in April, according to revised Census Bureau data. A 2% decline in gasoline sales, a 3.5% slide in auto purchases, and a 2.7% decline in building materials drove the May headline number lower.
There was some positive news in the release: The control group in Thursday’s release, which excludes several volatile categories and factors into the gross domestic product (GDP) reading for the quarter, rose 0.4%. That compares with a 0.1% decrease seen in April. Economists expected a 0.3% increase.
May sales, excluding auto and gas, declined 0.1%. Economists had expected a 0.3% rise. In April, sales excluding auto and gas rose 0.1%.
