WASHINGTON — The U.S. May retail sales report was mixed: sales were supported by a surge in gas prices but otherwise appear weak, but several areas rebounded from declines earlier in the spring.
May retail sales printed up 0.5% in their best gain since January, and were 0.5% better, excluding autos, but advanced only 0.1%, excluding autos and gasoline. This suggests most of the gain was in gas prices — gas stations posted a 3.6% rise in sales.
Upward revisions to April and March sales levels suggest a little extra strength. But the April-May average for ex-auto sales remains below the first-quarter average, showing that in the second quarter consumption might still decline.
This raises the possibility that May’s sales gain could be simply a “dead-cat bounce” after two months of declining sales.
— Market News International
