WASHINGTON: US retail sales declined more than expected in May, government data showed Tuesday, dragged by a slowdown in auto sales as consumers pulled back after hurrying to get ahead of President Donald Trump’s sweeping tariffs.
Last month, overall sales fell by 0.9 percent from April to $715.4 billion, according to data released by the Department of Commerce.
It was the largest decline since the start of the year, and bigger than the 0.6 percent drop expected by a Briefing.com consensus forecast.
From a year ago, retail sales were up 3.3 percent, still a slowdown from the 5.0 percent rate in April.
Analysts said consumers had likely brought forward major purchases in anticipation of Trump’s tariffs — the president imposed a sweeping 10 percent levy on almost all US partners in April after earlier threats.
Trump also separately slapped tariffs on imports of steel, aluminum and automobiles, fueling concern that this would push inflation up in the coming months.
Excluding autos and parts, retail sales in May were still 0.3 percent down from the prior month.
Sales at motor vehicle and parts dealers slumped 3.5 percent on-month, while those at restaurants and bars fell 0.9 percent.
