Retail sales in May rose by only 0.3% on the headline data, short of the Dow Jones target of 0.7% and short of the Bloomberg target of 0.6%. The number was put at $437.65 billion, and this is enough of a drag that it may impact GDP forecasts on a marginal basis, as consumer spending is such a large component of gross domestic product.
If you back out the auto component, retail sales were up by only 0.1% in May. Now if you back out autos and gasoline, spending was flat. Bloomberg was expecting a gain of 0.4% in May’s ex-auto number and 0.5% in May’s ex-auto and gasoline sales.
The only saving grace here is that April retail sales data was revised higher. Sales were up by 0.5% in April, versus a preliminary report of only a 0.1% gain. The ex-autos component was revised to up 0.4% from a flat initial report for April.
Again, this is low enough that it could shave off some estimates marginally from the second-quarter GDP targets.
Before the panic sets in, it is important to remember that these are seasonally adjusted month-over-month readings. If you compare this to May of 2013, total retail and food sales were up by 4.3%.
ALSO READ: 11 Ways to Avoid the Next Stock Market Crash
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
