Retail Spending in May Falls Short of Expectations, Raising Concerns of Economic Slowdown

Retail spending in May was weaker than anticipated, with sales rising only 0.1%, slightly below the expected 0.2% increase. This follows a revised 0.2% decline in April. Year-over-year, sales increased by 2.3%. The stock market remained stable, and Treasury yields declined post-report. With consumer spending critical to economic activity, this data raised concerns about a potential economic slowdown and future Federal Reserve monetary policy. The inflation rate in April was above the Fed's target at 2%.