12:43
U.S. retail sales in May exceeded expectations, with tax refunds and rising stock markets jointly supporting consumer spending.Glonghui, June 17 — U.S. retail sales in May rose more than expected, but as the support from large tax refunds in offsetting rising prices gradually weakens, future growth momentum may slow down. The U.S. Department of Commerce Census Bureau announced on Wednesday that retail sales in May increased by 0.9% month-on-month, surpassing the market expectation of 0.5%. Part of the sales growth in May reflects that rising gasoline prices boosted gas station revenues. Affected by the war in Iran, gasoline prices once rose to the highest level in four years. Since then, oil prices have retreated, and this week the average retail gasoline price in the U.S. fell below $4 per gallon for the first time since April. Tax refund funds together with rising stock markets have supported consumer spending, but part of this consumption growth has come at the expense of reduced savings. The savings rate in April fell to its lowest level in four years. Core retail sales, which exclude automobiles, gasoline, building materials, and food services, grew by 0.7% in May, compared to an increase of 0.5% in April. Core retail sales most closely align with the consumer spending component in GDP. The tax filing season has ended, and most tax refund funds have been used up. Economists at PNC Financial said an analysis of internal data shows that "households are spending tax refund funds faster than in previous years, and increased gasoline spending is the main reason for this difference."