With inflation hitting U.S. consumers and producers hard, additional bad news arrives as retail sales fall in May.
(The Center Square) – The U.S. Census Bureau Wednesday released advance estimates of U.S. retail sales which showed those sales fell 0.4 percent in May.
Motor vehicle and parts dealers took the biggest hit, with sales dropping 3.5 percent. Electronics and appliance stores’ sales decreased 1.3 percent. Furniture and home furniture stores, as well as health and personal care stores, also experienced a decrease in sales.
Overall, online sales were down 1 percent in May.
The report comes out as the Bureau of Labor Statistic’s recent Consumer Price Index reports consumer prices have spiked by 8.6 percent in the last year. Meanwhile, gas prices have risen to a record-high $5.01 national average.
Wall Street fell into a bear market this week, meaning an index such as the S&P 500 or the Down Jones Industrial Average has fallen 20 percent below the most recent high for a sustained period of time. The S&P 500, at close of trading Tuesday, was down 21.6 percent for the year.
The U.S. Federal Reserve Bank is expected to raise interest rates to combat inflation. Polling shows many Americans lack confidence in the economy’s future performance and expect it to get even worse.
Originally published by The Center Square. Republished with permission.
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