Consumer Behavior

Retail sales took a dip in May

Photo by istock.com

June 24, 2022

Inflation, pricier gas and increasing interest rates impacting car and home purchases all contributed to a decline in American retail spend in May.

Retail sales dipped 0.3% from April's 0.7% increase, according to Commerce Department data.

The deep dip in car sales played a big role, according to a Wall Street Journal report, which reported that retail sales actually rose 0.5% if the auto sales are not factored into the spend analysis.

"We're in a little bit of a watershed in terms of what's going to happen to the economy," Craig Johnson, president of research and consulting firm Customer Growth Partners, told the news outlet. "The American consumer — she's very resilient, but she's not infinitely resilient."