Consumer Behavior

Retail sales dip in May while restaurant services spike a bit

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June 17, 2021

Retail sales in the U.S. dipped 1.3% in May, according to Commerce Department data, but growth is still strong given a 28.1% increase on a year-to-year basis.

Consumers spent more on services last month, likely due to the COVID-19 vaccination effort, and resumed travel, according to a New York Post report.

"Activity decelerated likely on a shift from goods spending to services," Rubeela Farooqi, chief U.S. economist at High Frequency Economics in White Plains, New York, told the news outlet. "Despite the slowdown, sales are rising at a strong pace in the second quarter."

Restaurants and bars are the lone services category in the Commerce Department's retail sales report, which stated the May retail sales dip was partly due to a 3.7% drop in auto sales receipts.

E-commerce retail sales dropped 0.8% while sales of apparel in stores rose 3%.

Consumer activity at bars and restaurants, however, saw a 1.8% rise in receipts in May, and are 70.6% higher compared to May 2020.