Thursday, March 26, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

US retail sales rose 0.3 percent in May

By
From page B11 | June 13, 2014 |

WASHINGTON — U.S. retail sales rose modestly in May as consumers turned cautious in their spending. But the weaker-than-expected result is unlikely to derail overall economic growth in the second quarter.

Retail sales rose 0.3 percent in May, helped by a jump in demand for autos, the Commerce Department said Thursday. The result follows a 0.5 percent climb in April, which was revised up from an initial estimate of 0.1 percent. March sales surged 1.5 percent — the biggest one-month gain in four years.

Analysts said any disappointment in May was offset by the change in April’s figure.

“May retail sales fell short of estimates, although upward revisions to April make it about a wash versus consensus forecasts,” said Jay Feldman, director of U.S. Economics Research at Credit Suisse.

Retail sales had fallen sharply in January as winter storms cut into shopping and various other types of economic activity. Economic growth went into reverse in the first quarter, shrinking at an annual rate of 1 percent. But the revival in consumer spending has led economists to predict a solid rebound to 3 percent growth or better in the current April-June quarter.

For May, auto sales increased 1.4 percent. The rise in auto sales had been expected after dealers reported last week that sales in May jumped to a nine-year high, helped by brisk demand for SUVs and pickup trucks. But sectors outside of autos did not fare as well.

Paul Dales, senior U.S. economist at Capital Economics, said that the declines at department stores and appliance stores were hard to understand, given the rapid rise in employment. Households are also feeling wealthier with the strong gains in the stock market and in home prices.

“We expect it won’t be long before sales start rising more rapidly,” Dales said in a research note. “Overall, the fundamentals suggest that the U.S. economy remains healthy.”

Sales at hardware stores and furniture stores increased, but department store sales fell 1.4 percent. A broader category that includes department stores and big box stores such as Wal-Mart and Target saw sales fall 0.6 percent.

Sales were also down at specialty clothing stores and electronics stores but posted a solid gain of 0.6 percent in the category that includes Internet shopping.

Many economists are forecasting that overall economic growth will remain at a solid 3 percent level in the second half of the year.

Part of the optimism reflects expectations that employers will keep increasing their hiring, with the extra jobs boosting incomes and supporting stronger consumer spending.

The economy added 217,000 jobs in May, the fourth straight month of a gain of more than 200,000. That hasn’t happened since 1999. The unemployment rate remained unchanged in May at 6.3 percent, the lowest in more than five years.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Articles

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

    Vacaville honors top cops, support staff

    By Kevin W. Green | From Page: A1, 2 Comments | Gallery

     
     
    Kings honor Rankin, Mustangs

    By Paul Farmer | From Page: A2, 1 Comment | Gallery

    Fairfield mall to host first aid kit assembly party

    By Susan Hiland | From Page: A3

     
    Fairfield PD chief to address Solano GOP

    By Susan Hiland | From Page: A3, 1 Comment

     
    New meeting location for family support group

    By Kevin W. Green | From Page: A3

    Padan Elementary demonstrates new school culture

    By Susan Hiland | From Page: A3, 2 Comments | Gallery

     
     
     
    Fairfield police log: March 24, 2015

    By Susan Hiland | From Page: A7

    Suisun City police log: March 24, 2015

    By Susan Hiland | From Page: A7

     
    Frustration permeates college contract negotiations

    By Susan Winlow | From Page: A7 | Gallery

    .

    US / World

    Vallejo woman’s story a hoax, police say

    By The Associated Press | From Page: A1, 5 Comments

     
    Deceased woman’s video supports Wolk’s bill

    By The Associated Press | From Page: A4

     
    Man threatened suicide before shooting officer

    By The Associated Press | From Page: A6

    .

    Opinion

    We deserve freedom to choose our fate

    By Kelvin Wade | From Page: A5, 4 Comments

     
     
    .

    Living

    Today in History: March 26, 2015

    By The Associated Press | From Page: A2

     
    Community Calendar: March 26, 2015

    By Susan Hiland | From Page: A2

    Horoscopes: March 26, 2015

    By Holiday Mathis | From Page: A9

     
    After several years, my nieces now live with their father and are miserable

    By Kathy Mitchell and Marcy Sugar | From Page: A9

    .

    Entertainment

    David Crosby in car accident with jogger

    By The Associated Press | From Page: B5

     
    Contract not renewed for ‘Top Gear’ host

    By The Associated Press | From Page: B5

    TVGrid

    By Daily Republic Syndicated Content | From Page: B5

     
    Felicity Jones excited, tight-lipped about Star Wars role

    By The Associated Press | From Page: B5

    .

    Sports

     
    Prep badminton preview: City teams making their marks

    By Brian Arnold | From Page: B1, 1 Comment | Gallery

    6 teams with 10 or more losses most ever to reach Sweet 16

    By The Associated Press | From Page: B1

     
    After 1st division title in 39 years, Warriors want more

    By The Associated Press | From Page: B1

    Local report: Rodriguez boys swim past Vintage

    By Daily Republic staff | From Page: B1

     
    Rio mayor unveils controversial Olympic golf course

    By The Associated Press | From Page: B2

    Joe Gibbs’ son being treated for ‘brain function’ issues

    By The Associated Press | From Page: B2

     
    America’s Cup organizers want smaller, cheaper boats

    By The Associated Press | From Page: B2

    Gomez uses offense and defense, leads Brewers past A’s

    By The Associated Press | From Page: B2

     
    Cal to host UC Davis in 2019, Cal Poly in 2020

    By The Associated Press | From Page: B2

    Lanny McDonald selected as chairman of Hockey Hall of Fame

    By The Associated Press | From Page: B2

     
    Serena Williams hoping to play at Miami Open

    By The Associated Press | From Page: B2

    Change to extra points likely in NFL

    By The Associated Press | From Page: B2

     
    Bills to honor late owner Wilson with life-sized statue

    By The Associated Press | From Page: B2

    Tulowitzki homers, Butler strong in Rockies’ win over Giants

    By The Associated Press | From Page: B2

     
    Elliott heads to Martinsville to attempt 1st Sprint Cup race

    By The Associated Press | From Page: B2

    Alameda County to join talks about new Oakland stadium

    By The Associated Press | From Page: B2

     
    .

    Business

    .

    Obituaries

    Howard Leon Carnes

    By Nancy Green | From Page: A4

     
    .

    Comics

    Frank and Ernest

    By Daily Republic Syndicated Content | From Page: A8

     
    Baldo

    By Daily Republic Syndicated Content | From Page: A8

    Rose is Rose

    By Daily Republic Syndicated Content | From Page: A8

     
    Sally Forth

    By Daily Republic Syndicated Content | From Page: A8

    B.C.

    By Daily Republic Syndicated Content | From Page: A8

     
    Wizard of Id

    By Daily Republic Syndicated Content | From Page: A8

    Baby Blues

    By Daily Republic Syndicated Content | From Page: A8

     
    Zits

    By Daily Republic Syndicated Content | From Page: A8

    Get Fuzzy

    By Daily Republic Syndicated Content | From Page: A8

     
    For Better or Worse

    By Daily Republic Syndicated Content | From Page: A8

    Dilbert

    By Daily Republic Syndicated Content | From Page: A8

     
    Peanuts

    By Daily Republic Syndicated Content | From Page: A8

    Blondie

    By Daily Republic Syndicated Content | From Page: A8

     
    Garfield

    By Daily Republic Syndicated Content | From Page: A8

    Beetle Bailey

    By Daily Republic Syndicated Content | From Page: A8

     
    Pickles

    By Daily Republic Syndicated Content | From Page: A8

    Word Sleuth

    By Daily Republic Syndicated Content | From Page: A9

     
    Bridge

    By Daily Republic Syndicated Content | From Page: A9

    Sudoku

    By Daily Republic Syndicated Content | From Page: A9

     
    Crossword

    By Daily Republic Syndicated Content | From Page: A9

    Cryptoquote

    By Daily Republic Syndicated Content | From Page: A9