Retail Sales Post a Weak 0.1% Increase
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WASHINGTON — Sluggish automobile and department store purchases slowed the pace of retail sales in May to a weak 0.1% increase, the government reported Tuesday, and analysts said they did not expect much improvement soon.
“I think this is what the pattern will be like as we look forward,” said Lawrence Chimerine, an economist with the WEFA Group in Bala-Cynwyd, Pa. “I don’t think you’ll see a big retrenchment, but there won’t be much growth in consumer spending . . . for several years.”
Economists scrutinize consumer spending because it accounts for about two-thirds of overall U.S. economic activity.
Allen Sinai, an economist with the investment firm Boston Co., said: “I think it (the retail sales report) reinforces what is now and probably will continue to be a much more cautious consumer throughout the balance of the business expansion.”
The Commerce Department said retail sales increased to $141.1 billion on a seasonally adjusted basis last month after rising a strong 1% in April and 0.1% in March.
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