New numbers from the Commerce Department show consumers pulled back sharply on their spending in May, with retail sales dropping by 0.9%. That's significantly higher than the 0.6% drop expected by the Dow Jones consensus.
The decline comes despite surveys showing that consumer sentiment actually improved during the same period, though compared with levels that had been falling throughout the year.
The retail sales figure was pulled down by a steep drop in auto sales after Americans ramped up car buying ahead of President Trump's 25% duty on imported cars and car parts.
Gas sales also declined, contributing to the overall decrease in consumer spending as Americans showed growing unease over where the economy is headed.
The ongoing trade war ignited by President Trump's tariffs had dampened consumer sentiment in the spring.
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