In May, U.S. retail sales declined thanks to slower employment gains and weaker wage gains affecting demand. This was the second consecutive month for the fall and a sign the economy is tapering.
According to Commerce Department numbers on Wednesday, May's' 0.2 percent decline was similar to April's that had been previously disclosed as a gain. May's fall met the median economists' forecast, reported Bloomberg.
Retail sales sans autos declined 0.4 percent--its weakest numbers since May 2010; they had been forecast at unchanged.
Auto Sales Decline
But it was a darker picture for automobile sales: it experienced its greatest slump in two years.
In May, cars and light trucks sold at a 13.7 million annual rate, its weakest number in 2012 and a decline from April's 14.4 million, according to Ward’s Automotive Group data. The year-over-year gains for General Motors Co. (NYSE:GM) at 11 percent and Chrysler Group's 30 percent came in below analysts’ estimates.
Ford Motor Co. (NYSE:F) did exceeded estimates with a 13 percent rise in sales thanks to $100 per vehicle incentives.
The retail sales data, which isn't adjusted for prices, did show less expensive gasoline receipts at service stations, according to Bloomberg, falling 2.2 percent in May--the greatest amount in 2012.
In May, a gallon of regular fuel at the pump cost$3.71 on average, down from the April 4 peak of $3.94, reported AAA.
On Tuesday, the price fell to $3.54.
Consumers are Shopping
May's report showed spending rose 0.9 percent at clothing stores and at electronic chains, 0.8 percent.
May same-store sales rose more than analysts estimated for Target (NYSE:TGT) and Limited Brands Inc (NYSE:LTD).
But one company isn't ready to celebrate. Home Depot Inc. (HD), the U.S.'s biggest home- improvement retailer, sees joblessness remaining high.
Back on June 6, Home Depot's Chief Executive Officer Frank Blake said at an analyst conference, “We will still face higher-than-normal unemployment and underemployment rates, with the consequence that value will remain of major importance to our customers. Growth will be moderate.”
