US retail sales down more than expected in May

ISTANBUL

Retail trade in the US was down 0.9% month-on-month in May, following a downwardly revised 0.1% fall in April, according to US Census Bureau data released Tuesday.

The total trade volume amounted to $715.4 billion in May, while the market expected the figure would fall 0.5% monthly in May.

Sales, excluding cars, decreased by 0.3% in May.

Sales at garden and building supply stores fell 2.7%, while declining energy costs caused a 2% decline in gas station profits.

Bars and restaurants witnessed a 0.9% drop in sales, while dealers of motor vehicles and components had a 3.5% loss.

However, sales climbed by 0.4% when a number of categories were removed, including petrol stations, building material providers, and auto dealers.

Furniture stores had a 1.2% increase in sales, internet sales grew by 0.9%, and other merchants saw a 2.9% gain.

The monthly decline indicated that consumer demand began to fall as a result of the tariff uncertainty caused by US President Donald Trump's trade policy.

On the other hand, on an annual basis, retail sales rose 3.3% in May.

Industrial production in the US, meanwhile, fell 0.2% on a monthly basis in May, despite forecasts of a no change in the figure.

The US manufacturing sector's capacity utilization rate was at 77.4% in May, down 0.3 percentage points from a month ago.