As inflation drives up prices for essential products such as food and gasoline, retail sales slowed in May the National Retail Federation said on June 15.
“Retail sales are reflecting Americans’ growing concern about inflation and its impact on the cost of everything from groceries to gas,” NRF CEO Matthew Shay said in a statement. “Retailers are doing what they can to keep prices down, but we continue our call on the administration to repeal unnecessary and costly tariffs on goods from China to relieve pressure on American consumers and their family budgets.”
Noting that there has been "' little relief from inflation," NRF Chief Economist Jack Kleinhenz said " we expected some cooling off in sales in reaction to prices. There have been swings across sectors that reflect the impact of both higher prices and supply chain disturbances, and higher interest rates are expected to curb spending going forward. As inflation continues, consumers are looking for ways to stretch their dollars by saving less, tapping into savings accumulated during the pandemic and increasing their use of credit.”
Also on June 15, the U.S. Census Bureau said overall retail sales in May were down 0.3% seasonally adjusted from April but up 8.1% year over year. That compared with increases of 0.7% month over month and 7.8% year over year in April
NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed May was unchanged seasonally adjusted from April but up 6.7 % unadjusted year over year.
In April, sales were up 0.4% month over month and up 5.5% year over year.NRF’s numbers were up 5.4% unadjusted year over year on a three-month moving average as of May.
Sales were up 7.3% year over year for the first five months of the year. May sales were up in eight out of nine categories on a yearly basis, led by building materials stores, online sales and grocery stores, but fell in nearly half the categories on a monthly basis. Specifics from key sectors include:
- Online and other non-store sales were down 1% month over month seasonally adjusted but up 8.5% unadjusted year over year.
- Grocery and beverage stores were up 1.2% month over month and seasonally adjusted up 7.1% year over year.
- Clothing and clothing accessory stores were up 0.1% month over month seasonally adjusted and up 6% unadjusted year over year.
- Health and personal care stores were down 0.2% month over month seasonally adjusted but up 5.8% unadjusted year over year.
- Furniture and home furnishings stores were down 0.9% month over month seasonally adjusted but up 2.3% unadjusted year over year.
- Sporting goods stores were up 0.4% month over month seasonally adjusted and up 1.2%unadjusted year over year.
- General merchandise stores were up 0.1 percent month over month seasonally adjusted and up 0.9 percent unadjusted year over year.
- Electronics and appliance stores were down 1.3 percent month over month seasonally adjusted and down 4.3 percent unadjusted year over year.
