US retail sales slumped in May as consumers pull back
Consumers spent significantly less than expected in May, as Americans pulled back on making certain purchases, and especially on cars — one of the products most exposed to US President Donald Trump's tariffs.
Retail sales fell 0.9% last month, according to new Commerce Department figures released Tuesday, a greater dip than the 0.6% decline economists had predicted.
The weak sales data comes as the US Federal Reserve kicked off its two-day rate-setting meeting. The central bank is widely expected to hold interest rates steady, as bankers remain wary of possible price rises from Trump's tariffs, and now, from the Israel-Iran conflict's inflationary pressure on oil prices.
— Natasha Bracken
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