Americans pumped the brakes on spending in May as they continued to face high interest rates and steeper prices for everyday goods.
Retail sales, a measure of how much consumers spent on a number of everyday goods including cars, food and gasoline, rose just 0.1% in May, the Commerce Department said Tuesday. That is notably lower than the 0.3% increase forecast by LSEG economists, although it is higher than the revised 0.2% drop recorded in April.
Excluding the more volatile measurements of gasoline and autos, sales also climbed just 0.1 % last month.
The May advance is not adjusted for inflation, meaning that consumers may be spending the same but getting less bang for their buck.
SILVER LINING OF HIGHER INTEREST RATES: SAVINGS ACCOUNT RATES
"The ho-hum retail sales figures are probably in line with what the Federal Reserve expects and wants," said Ted Rossman, senior industry analyst at Bankrate. "The softness that we're seeing indicates that high interest rates are dampening demand, but not excessively so."
This is a developing story. Please check back for updates.
