May Retail Sales Fall; Drop is First Since August

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ay retail sales fell 0.5% from the previous month, the first drop since August, the Commerce Department reported Tuesday.

The decline to $343.6 billion followed a revised 1.5% gain in April, which had been the biggest gain since September. April’s increase had originally been reported at 1.4%.

Almost all trucking operations depend on the health of retail sales because such sales involve nearly every type of cargo.

The drop was greater than a 0.2% decline that economists had predicted, Bloomberg reported. The fall was the biggest since last June, and followed record retail fuel prices in April.

Excluding automobiles, May retail sales fell 0.2%, the first drop since April 2004, after a 1.4% gain the previous month.

Sales at automobile dealerships and auto parts stores fell 1.6%, the biggest drop since October 2003, after rising 2% in April. Sales at filling stations also fell 1.6% in May, following a 2.2% rise.

Sales at electronics and appliance stores dropped 0.1%, while furniture stores’ sales rose 0.4%.

Non-store retailers, which include online purchases and catalog sales, saw their sales drop 1.1% in May, the biggest decline in two years, following a 1.2% gain in April.

Sales at general merchandise stores, including department stores, fell 0.1% following a 1.3% rise.