There are signs that consumers are slowing their spending, as Retail Sales were only 0.1% higher from April to May. Sales in April were also revised downward from the originally reported flat reading to a 0.2% loss when compared to March.
What’s the bottom line? The pause in spending last month was a miss on estimates, as forecasters had predicted a 0.1% gain. The Fed will be closely watching future Retail Sales reports, as the strength of our economy will impact their monetary policy decisions this year.