Retail sales drop for first time in 11 months
Retail sales fell in May for the first time in 11 months as receipts at auto dealerships dropped sharply, but the decline was less than expected, Reuters reported.
Total retail sales slipped 0.2 percent, the U.S. Department of Commerce said, after a 0.3 percent rise in April. Economists had expected sales to fall 0.4 percent.
A separate report from the U.S. Department of Labor showed producer prices rose 0.2 percent after a 0.8 percent increase in April.
“The consumer isn’t dead. It’s good news for the day, and further evidence that while perhaps not robust, the recovery is bumping along in fits and starts,” said Michael Farr, president of Farr, Miller & Washington, in an interview with Reuters.
Though weak data has shown a lull in the economy, economists pin much of the recent weakness on high gasoline prices and supply chain disruptions from the earthquake and tsunami in Japan. Economists say activity will pick up in the second half of the year.