Investing.com - Financial Markets Worldwide

U.S. Consumers Increased Spending On Discretionary Items In May

ByThe National Bank of Canada
Published 06/14/2012, 01:51 AM
Updated 05/14/2017, 06:45 AM

According to the U.S. Census Bureau, not only U.S. retail sales declined 0.2% in May, but they did so from a lower level than previously thought, since March and April levels have been revised down 0.3% and 0.7% respectively. April’s monthly change turned from edging up 0.1% to dropping 0.2%, meaning two declines in the last two months, a first since June 2010. But today’s Hot Chart shows that this development is not as bad as it seems at first glance.

Indeed, while gasoline prices were falling, consumers spent $1 billion less on that item in May, leaving more money to spend on discretionary items (retail sales excluding gasoline, groceries and health/personal care). As a matter of fact, purchases of such items increased 0.1% or $417 million. In our opinion, this is a sign that consumers are not pulling back as much as the headline may suggest. Moreover, falling gas prices also means that households were given room to boost their savings rate from a worrying low level in April.
Consumers increased spending on discretionary items in May

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.