US Consumers Still Buying Strongly in May
June 15, 04
US consumers continued their buying spree in May despite rising gasoline prices and retailers can expect growth to continue in June, according to the latest survey from the National Retail Federation (NRF).
May retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) rose 5.9 percent on May last year and increased 0.8 percent adjusted over April.
GAFS sales increased by 10 percent in the first quarter and so far in the second quarter have risen 7.5 percent.
“As the economy continues to pick up steam, retailers are reaping the benefits,” said NRF Chief Economist Rosalind Wells. “The job market has long been the missing piece of the economic puzzle. With recent good news regarding job creation, all the pieces have fallen into place.”
The Commerce Department’s May retail sales data showed that total retail sales, which includes non-general merchandise categories such as autos, gasoline stations and restaurants, increased 1.2 percent seasonally adjusted for the month and rose 6.1 percent unadjusted year-over-year.
“Consumers may be paying much more at the pump, but their spending patterns have not been visibly affected,” said NRF President and CEO Tracy Mullin. “With Father's Day approaching, retailers should expect to see this growth continue into June.”