RETAIL SALES Slump Shock: Americans Feel the Squeeze Under NEW Trade Policies
— Retail sales in the U.S. took a big hit in May, falling 0.9%. This is the sharpest drop since January, according to the Commerce Department. Almost every major area saw losses, from car dealers to restaurants.
The biggest fall was in motor vehicle sales, down 3.5%. Many Americans rushed to buy cars before President Trump’s new tariffs kicked in earlier this year. Sales at home improvement stores and gas stations also dropped, while electronics and grocery sales slipped a little.
But not all news was bad. “Core” retail sales — which leave out autos and gas — actually went up by 0.4%. This means people are still spending on everyday items even if they’re holding back on bigger purchases.
Seven out of thirteen tracked sectors fell last month, raising worries about what comes next for our economy. Experts say if shoppers keep pulling back because of higher prices and new trade rules, it could slow down growth unless confidence picks up soon.
