US Retail Sales Surged 17.7% MoM in May

(18 June 2020)  US retail sales spiked to 17.7 percent MoM in May from -14.4 percent in April as the economy began reopening from the COVID-19 induced lockdown. While federal tax payments and unemployment benefits helped to boost sales, in annual terms, retail sales still contracted 6 percent YoY, reflecting the mounting damage caused by the lockdown.

• The uptick in sales was strongest in the clothing and accessories channel, which grew 188 percent MoM in May. Furniture and home furnishing sales also showed strong growth of 90 percent MoM.
• The auto sector constitutes around one-fifth of total retail spending and recorded growth of 44 percent MoM. Steep consumer incentive packages offered by motor vehicle manufacturers and dealerships helped support this growth.
• The reopening of stores and return to work for some also boosted sales for gas station to the tune of 13 percent MoM.