Consumers Shift Spending to Services
Retail sales dropped 1.3% in May, following a 0.9% gain in April, reported the U.S. Department of Commerce.

Consumers cut spending by 1.3% in May.
It appears the buying spree spurred by federal stimulus checks is ending as consumers shift their spending to services as the economy reopens.
Retail sales dropped 1.3% in May, following a 0.9% gain in April, reported the U.S. Department of Commerce. The drop is higher than the 0.8% decrease predicted by economists.
Consumers are spending more on services. One big winner in this category is restaurants and bars, which rose 1.8% in May, pushing food-service sales higher than pre-pandemic levels.
While consumer spending is expected to grow, economists predict the pace will be moderate as enhanced unemployment benefits expire and consumers spend their stimulus checks. A pickup in inflation may also cause consumers to pull back discretionary spending.
Economists predict spending will slow in the second half of the year. Eight of 13 major retail categories posted declines in sales in May. While vehicle sales hit record levels, receipts for furniture, electronics and building materials declined.
Clothing store sales rebounded 3% in May as offices opened again and people engaged in more social activities.
Originally posted on Auto Dealer Today
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →