FX.co ★ U.S. Retail Sales Inch Up 0.1% In May, Slightly Less Than Expected

Retail sales in the U.S. saw a slight uptick in May, as reported by the Commerce Department on Tuesday.

According to the report, May retail sales rose by 0.1 percent following a revised 0.2 percent decline in April. Economists had anticipated a 0.2 percent increase in retail sales for May, aligned with the initially unchanged reading for April.

The marginal increase was partially driven by a rebound in motor vehicle and parts dealer sales, which rose by 0.8 percent in May after a 0.4 percent decrease in April. Excluding sales from motor vehicle and parts dealers, retail sales fell by 0.1 percent in May, consistent with the revised 0.1 percent decline in April. Economists had expected these ex-auto sales to rise by 0.2 percent, mirroring the originally reported increase for April.

The report noted a significant drop in gas station sales, which declined by 2.2 percent in May following a 1.9 percent increase in April. Additionally, sales in furniture and home furnishings stores, as well as building materials and supplies dealers, saw notable decreases. Conversely, sales in sporting goods, hobby, musical instrument, and book stores experienced a significant rise.

Core retail sales, which exclude the more volatile categories such as automobiles, gasoline, building materials, and food services, increased by 0.4 percent in May after a 0.5 percent decline in April.