The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
US retail sales unexpectedly rose in May, showcasing resilient consumer demand in the face of mounting economic challenges.
The value of retail purchases climbed 0.3 percent after a 0.4 percent gain in April; Commerce Department data showed Thursday. Excluding autos and gasoline, sales were up 0.4 percent. The figures aren’t adjusted for inflation.
The overall figure beat all but one estimate in a Bloomberg survey of economists. Sales at 10 out of 13 retail categories advanced last month, in part reflecting greater spending on cars — which were widely expected to drop.
While the figures came in stronger than expected, they still show moderating consumer demand from the past year. Americans have kept spending even against a backdrop of elevated prices and higher interest rates, supported by a still-vibrant job market and pent-up savings.
ADVERTISEMENT
The sales data offer another slice of the demand picture for Federal Reserve officials ahead of their July policy meeting.
Sustainable household spending has kept price pressures from slowing appreciably. Fed officials left interest rates unchanged on Wednesday but hinted at more tightening ahead. Their new quarterly forecasts expect stronger economic growth and underlying inflation.
Receipts at restaurants and bars — the only service-sector category in the report — rose 0.4 percent.
The retail sales report will help shape economists’ estimates for personal spending and gross domestic product in the second quarter. Before the figures, the Atlanta Fed’s GDPNow forecast expected a 1.4 percent annualised increase in consumption for the period.
So-called control group sales — which are used to calculate GDP and exclude food services, auto dealers, building materials stores and gasoline stations — advanced 0.2 percent in May after rising 0.6 percent in the prior month. Consumer spending accounts for about two-thirds of GDP.
The control group sales “suggest household spending will remain positive but will decelerate in the second quarter,” Rubeela Farooqi, chief US economist at High Frequency Economics, said in a note.
Because the retail sales data aren’t adjusted for changing prices and only include one service-sector category, it can be difficult to draw concrete conclusions. More complete inflation-adjusted data on May outlays, including services, are due later this month.
A separate report Thursday showed applications for US unemployment benefits last week stayed at the highest level since late 2021.
ADVERTISEMENT
By Augusta Saraiva
Learn more:
US Retail Sales Increase in Sign of Steady Consumer Spending
US retail sales increased in April, suggesting consumer spending is holding up in the face of economic headwinds including inflation and high borrowing costs.
The Japanese apparel chain will be launching its sister brand GU in the US later this year, targeting younger consumers with lower prices and a curated selection of trendy wares.
Canada, France and Ireland are among the countries working with home-grown fashion talent to create uniforms for their teams at this summer’s Olympic Games. For these small labels, it’s an unprecedented opportunity to capitalise on one of sports’ largest events.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.