The decrease in retail spending was driven by a steep decline in car sales, just two months after consumers rushed to make car purchases before President Donald Trump’s tariffs were scheduled to go into effect.
ByZachary Folk
ByZachary Folk,
Forbes Staff.
Retail spending dropped by 0.9% in May—the second month in a row of falling spending as consumers appear to grow more cautious faced with anxiety over potential tariffs as the U.S. government negotiates trade deals with China and the European Union.
The decrease in retail spending was driven by a steep decline in car sales, just two months after ... More
Consumers spending pulled back sharply, weighed by declining gas sales and looming unease over where the economy is headed.
Americans are feeling a hangover from their tariff-fueled buying frenzy early in the spring.
Two straight months of spending declines in April and May had concerned market watchers.
Retail sales rose 0.5% last month, maching economists' estimates.
Economists were caught off guard. Those polled had expected a slight month-to-month increase for a reading of 54.2.
U.S. consumers spent $757.1 billion on retail and food services in April, a 0.5% increase over March, the U.S. Census Bureau…
