WASHINGTON, June 15 (Xinhua) -- U.S. retail sales declined by 1.3 percent in May, after surging in the prior two months driven by the distribution of stimulus checks, the U.S. Commerce Department said Tuesday.
Retail sales totaled 620.2 billion U.S. dollars in May, a decrease of 1.3 percent from the previous month, but 28.1 percent above May 2020, according to the report.
Retail sales surged by an upwardly revised 10.7 percent in March, followed by an unrevised 0.9 percent increase in April. Despite the May decline, total sales for the March through May period were up 36.2 percent from the same period a year ago, the latest data showed.
Economists have said stimulus checks in the federal government's COVID-19 relief package sent out earlier this year helped drive the retail sales to spike.
"The slowdown in retail sales (in May) was driven by the sharp drop in vehicle sales and everything related to housing," Diane Swonk, chief economist at Grant Thornton, a major accounting firm, said in a blog.
"Demand cooled as consumers, deterred by higher prices, shifted their focus to stepping out at restaurants and bars. Supply constraints due to computer chip shortages persisted; plants are still trying to ramp up," Swonk said.
National Retail Federation (NRF) President and CEO Matthew Shay noted that despite the decline in May, retail sales for the first five months of this year are already tracking 17.6 percent above the same five months of 2020.
"While there are downside risks related to labor shortages, supply chain bottlenecks, tax increases and over-regulation, overall, households are healthier, and consumers are demonstrating their ability and willingness to spend. We are confident," Shay said.
According to the National Retail Federation (NRF), the year-over-year increases for both April and May were unusually high because most stores were closed by the pandemic during those months last year.
Despite "occasional" month-over-month declines, sales have grown year-over-year every month since June 2020, NRF said, citing official data.
The Commerce Department report showed that retail trade sales in May were down 1.7 percent from April 2021, but up 24.4 percent above last year.
Clothing and clothing accessories stores were up 200.3 percent from May 2020, while food services and drinking places were up 70.6 percent from last year.
"High prices on vehicles and homes are accelerating the shift away from spending on big-ticket items to fill our homes and garages to spending on services," Swonk said. "Consumers are escaping their homes, stepping up and stepping out." Enditem