“Consumer spending growth is shifting from goods to services as the economy reopens,” said Gus Faucher, chief economist at PNC Financial Services Group.
Mr. Faucher had forecast that retail sales would rise less than 1 percent last month, with a large jump in restaurant spending being offset by a decline in auto sales brought on by a shortage of inventory.
Retail sales have been a closely watched barometer of the economic recovery during the pandemic.
Retail sales, which experienced a record drop at the start of the pandemic, have returned to prepandemic levels, though at times haltingly.
Michelle Meyer, U.S. economist at Bank of America, said last month’s retail sales, if anything, “understate consumer strength.” She tracked credit card spending during the Memorial Day holiday, which was the final weekend of May.
”, Gus Faucher, Faucher, —, Michelle Meyer
PNC Financial Services Group, Bank of America