According to the U.S. Census Bureau, “[a]dvance estimates of U.S. retail and food services sales for May 2023, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $686.6 billion, up 0.3 percent (±0.5 percent)* from the previous month, and up 1.6 percent (±0.7 percent) above May 2022.” The 0.3 percent increase is above economists’ expectations of a 0.1 percent decline, according to Refinitiv (reported at CNN). [“*The 90 percent confidence interval includes zero. There is insufficient statistical evidence to conclude that the actual change is different from zero.”]

There are signals that inflation, higher interest rates, more stringent credit conditions and the impending resumption of student loan payments are impacting consumer choices. According to a CNBC and Morning Consult survey (reported at CNBC), 92 percent of Americans are pulling back spending, with concerns particularly heightened among middle-income Americans (those who make between $50,000 and $100,000 per year) who report being “somewhat” or “very” worried about higher prices. Sourcing Journal reports that spending on apparel and footwear continued to slow in April, up just 2.7 percent from the same month last year marking the fourth consecutive month of decline.

Last Updated on June 16, 2023 by Ramin Seddiq