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Consumers barely increased spending in May from April as still high prices on groceries and other necessities and high interest rates curbed spending.
Retail sales rose 0.1 percent in May, below the pace that economists projected, according to the Commerce Department.
April sales, meanwhile, were revised downward — a 0.2 percent decline, from unchanged. Sales rose 0.6 percent in March and 0.9 percent in February. That comes after sales fell 1.1 percent in January, dragged down in part by inclement weather.
Excluding gas prices and auto sales, retail sales rose the same amount.
Retail sales in May, in part, were depressed by falling gas prices. Excluding sales from gasoline, sales were up 0.3 percent. The national average price for a gallon of unleaded gasoline was $3.45 as of Monday; a month ago, it was $3.59, AAA said.
Government retail data isn’t adjusted for inflation, which was unchanged from April to May, according to the latest government report. High inflation helps to inflate retail sales figures.
Still, economists said the report reflected an increasingly cautious consumer.
