yolowire.com - High interest rates and inflation continued to burden U.S. consumers in May as retail sales again rose less than economist predictions. For the month, advance estimates of the print showed a 0.1 percent gain, lower than the 0.3 percent anticipated but higher than April’s downwardly revised drop of 0.2 percent.
The biggest drag on RetailSales was a 2.2 percent drop at gas stations. Also weighing on the print were lower sales at furniture stores, building materials and garden equipment. Somewhat offsetting these losses was solid spending at speciality sporting goods, books and musical instruments—perhaps Americans were trying to keep their children busy during the upcoming summer vacation.
As inflation remains elevated, the Federal Reserve has been reluctant to lower 25-year high interest rates. However, slower retail spending and a slowing economy may push the central bank to revisit policy.