Advertisement

Retail sales down 0.2% in May in another sign of economic trouble

Share via

WASHINGTON -- Consumers have been almost single-handedly propping up the economic recovery, but new signs are emerging that they’re no longer up to the task.

Retail sales were down 0.2% in May, the second straight monthly decline, the Census Bureau reported Wednesday. The government had originally reported that retail sales were up slightly -- 0.1% -- from March to April, but that figure was revised to a 0.2% decline as well.

The figures for retail sales, which include food services, come as consumer confidence has dropped according to some gauges amid Europe’s economic problems.

Advertisement

There was some good news for consumers Wednesday. The Labor Department reported that producer prices fell 1% in May after a 0.2% decrease in April. The drop was driven by a 4.3% decline in energy prices, the biggest falloff since March 2009.

But falling prices for gasoline and other types of energy were a double-edged sword -- demand was down because of slowing economic growth in the U.S. and abroad.

Motor vehicle sales were among the only bright spots on the retail landscape. Sales of cars and parts were up 0.8% in May. Excluding those transactions, all other retail sales were down 0.4%, the Census Bureau said.

Advertisement

RELATED:

Great Recession erased nearly 40% of family wealth

Spain sees borrowing costs rise despite bank bailout plan

Advertisement

Small business optimism remained flat in May, trade group says

Advertisement