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BCN-06
US-ECONOMY-INDICATOR-RETAIL
US retail sector posts healthy gains in May
WASHINGTON, June 15, 2019 (BSS/AFP) – American consumers spent freely on
autos and electronics last month, giving the retail sector a bump even as
worries mount that the US economy is slowing, government data showed Friday.
News of the upswing in spending came as the picture for April also changed
for the better, suggesting retail sales were likely to support GDP growth in
the second quarter.
Sales rose 0.5 percent compared to April to $519 billion, according to the
Commerce Department’s latest estimate, putting them up 3.2 percent above May
of last year.
The result was below forecasts but appeared smaller after April was
revised upwards from a decline to a modest 0.3 percent increase.
Sales of autos and parts rose a healthy 0.7 percent, reversing a sharp
drop in April.
Excluding sales of motor vehicles and parts, retail sales also rose 0.5
percent.
Electronics stores sprang to life, posting a 1.1 percent gain that
nevertheless left them 2.4 percent below their level of May last year, when
the US economic engine raced under the effects of fiscal stimulus and 2017’s
tax cuts.
Sales at sporting goods, book and musical instrument outlets rose 1.1
percent but were also well below year-ago levels.
Meanwhile, long-suffering department stores continued their decline,
posting losses of 0.7 percent, their biggest month-to-month drop since
December.
Online sales continued to march in the opposite direction, rising 1.4
percent, putting them 11.4 percent above May of last year.
The Federal Reserve next week is widely expected to signal its readiness
to act should prospects for continued US economic growth deteriorate later
this year, but to leave interest rates untouched for the time being.
BSS/AFP/HR/0920