Americans are starting to pull back on spending in the face of rising gas prices and interest rates. US retail sales dropped slightly in May from the previous month—by 0.3%—and were below economists’ expectations of a small increase.
Most of the drop can be attributed to flagging car sales, which fell 3.5%. Excluding cars, overall retail sales rose. But Americans also spent less on furniture, electronics, online shopping, and personal care.
“Some people may be deciding that now isn’t the best time to make one of these large purchases, especially with inflation rampant and recession worries looming,” said Ted Rossman, a Bankrate analyst.
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