U.S. retail sales in May hardly increased and were also revised down for the previous months, indicating increased consumer spending pressure.

On Tuesday, June 18, the U.S. Department of Commerce released the retail sales data for May. The data showed that the retail sales in the United States increased by 0.1% month-on-month, lower than the market expectation of 0.3%, and the previous value was revised down from 0% to -0.2%.

Retail sales are almost across-the-board below expectations. Specifically:

Retail sales increased by 0.1% month-on-month, expected 0.3%, previous value -0.2%;

Excluding autos, retail sales decreased by -0.1% month-on-month, expected 0.2%, previous value 0.2%;

Excluding autos and natural gas, retail sales increased by 0.1% month-on-month, expected 0.4%, previous value -0.3%;

Core retail sales (excluding autos, gasoline, building materials and food services) increased by 0.4% month-on-month, expected 0.3%, previous value -0.5%, the largest drop in a year;

Adjusted for (roughly) inflation, the 'real' non-seasonally adjusted retail sales fell.

After the data was released, the U.S. dollar index fell more than 10 points in the short term to 105.40; U.S. stock futures rose slightly in the short term, with Nasdaq 100 futures expanding to a gain of 0.3%. U.S. 10-year treasury notes yield fell in the short term and is now trading at 4.252%.

Gasoline and food service expenditures have dropped the most.

Among the 13 categories tracked by the U.S. Department of Commerce, five categories declined, with gasoline and food service expenditures being the largest downward driving factor. The price of gasoline was relatively cheap during the month, and service expenditures such as restaurants and bars decreased by 0.4%, the largest decline since January.

These data highlight the significant slowdown in consumer spending after strong growth at the beginning of the year. Economists predict that due to continued inflation, a gradually cooling job market, and signs of increasing financial pressure, Americans will be more cautious, thus keeping consumption at a moderate growth rate in the future.

Consumer borrowing data released earlier this month showed that credit card balances fell for the first time in three years due to rising household debt costs and delinquency rates continued to rise.

Powell was 'slapped in the face', and rate cuts are coming closer?

Data released last week showed that both the May CPI and PPI indices in the United States were lower than expected, strengthening the market's expectation that the Federal Reserve will soon be able to cut interest rates. Federal Reserve Chairman Powell maintained his interest rate last week, saying that consumer spending is still growing steadily and the household sector is 'in pretty good shape.'

The report may further enhance the expectation that weak U.S. economic growth will prompt the Federal Reserve to begin cutting interest rates.

Edited by Jeffrey