OLD Media News

U.S. retail sales jump more than expected in May

Retail sales in the United States posted better than expected performance in May, sparking hopes for a quick recovery.

Josh Boak and Anne D’Innocenzio reported the news for the AP:

American shoppers ramped up their spending on store purchases by a record 17.7% from April to May, delivering a dose of energy for retailers that have been reeling since the coronavirus shut down businesses, flattened the economy and paralyzed consumers during the previous two months.

The government’s report Tuesday showed that consumers’ retail purchases have retraced some of the record-setting month-to-month plunges of March (8.3%) and April (14.7%) as businesses have increasingly reopened. Still, the pandemic’s damage to retailers remains severe, with purchases still down 6.1% from a year ago.

Ken Bredemeier from VOA wrote:

All retail sales categories advanced in May, with a 44% increase in car and truck sales and a 29% increase in restaurant receipts as Americans looked to escape from their homebound coronavirus quarantines and go out to eat, or at least drive by for curb-side food pick-ups. Clothing and furniture sales also jumped.

The retail spending was boosted by $1,200 stipends the U.S. government sent in April and May to many Americans to ease the economic pain of the coronavirus shutdowns and by the ongoing $600-a-week extra unemployment cash benefits being sent to the more than 40 million workers who have been laid off from their jobs.

CNBC’s Jeff Cox noted:

After being almost completely shuttered during the lockdown, food services and drinking places saw a 29.1% rebound in May. Some states began allowing outdoor dining during the month after the establishments were limited to curbside pickup and delivery.

While the monthly gains set records, the economy is still making up for lost ground.

Total sales were off 6.1% from a year ago as economists still expect the biggest annualized GDP in the second quarter that the U.S. has ever seen.

Irina Slav

Recent Posts

WSJ’s Brown is leaving publication

Ken Brown of The Wall Street Journal is leaving the news organization. He is an…

7 hours ago

Jones will not seek another Dow Jones News Fund board term

Dow Jones News Fund President Brent W. Jones announced at the nonprofit journalism training organization’s…

7 hours ago

Bloomberg hires Clark to cover VC and startups

Jillian Ward, managing editor for U.S. technology at Bloomberg News, sent the following note to…

7 hours ago

Berke of STAT News on the importance of its coverage

Rick Berke, a co-founded and executive editor of STAT News, writes about the importance of…

7 hours ago

Maxwell joins Gizmodo as a tech reporter

Thomas Maxwell has joined Gizmodo as a tech reporter. He previously was at Business Insider covering…

12 hours ago

Banking Times acquires The New Fiver

Banking Times has acquired the domain name "The New Fiver" for an undisclosed amount, aiming…

1 day ago