Despite the persistent challenges posed by high inflation and increasing borrowing costs, Americans demonstrated an uptick in their spending at retailers last month.

According to the report released by the Commerce Department on Thursday, retail sales experienced a 0.3% increase from April to May, primarily driven by stronger sales in the automotive sector, including auto and parts dealers.

Economists had initially anticipated a decline in sales for the month. However, the recent increase indicates the resilience of the economy, although retail sales have exhibited volatility throughout the year.

After a significant surge of nearly 3% in January, sales plummeted in February and March before rebounding in April, the Associated Press reports.

The latest data on retail sales align with a recent government report indicating a slight easing of consumer inflation in the past month.

Prices only rose by 0.1% from April to May, resulting in a 4% increase over the past 12 months—the lowest figure in over two years.

While Americans continue to face price surges in various categories such as rent and used cars, some of these price increases are expected to slow down or even decline in the upcoming months.

Written by staff