Overview

• The Commerce Department reported a 0.9% decline in retail and food service sales in May, the largest monthly drop since January.
• Motor vehicle and parts sales plunged 3.5% as consumers and dealerships rushed purchases in March and April to beat proposed tariffs.
• Core retail sales excluding autos, gasoline, building materials and food services gained 0.4%, signaling resilient consumer demand.
• Year-over-year retail outlays climbed 3.3% to $715.4 billion in May despite the monthly pullback.
• Industrial production fell 0.2% and capacity utilization eased to 77.4% even as consumer sentiment improved in June ahead of the Fed’s rate decision.