U.S. retail sales drop, miss expectations amid tariff fears

WASHINGTON, June 17 (Xinhua) -- U.S. retail sales declined sharply in May, missing analysts' expectations, amid concerns that President Donald Trump's tariffs could damage the economy, according to data released on Tuesday by the U.S. Department of Commerce (DOC).

Retail sales fell 0.9 percent, exceeding the 0.6 percent drop that economists had forecast.

The decline reflected growing worries that the Trump administration's sweeping tariffs might slow down consumer activity.

One major factor in the decline was a drop in auto sales. Many consumers made large purchases earlier in anticipation of tariff announcements, avoiding car dealerships in May.

In addition to auto sales, building materials and garden supply stores saw a 2.7 percent decline. Lower energy prices led to a 2 percent drop in revenue at gas stations. Sales at food and beverage stores were down 0.7 percent, including a 0.8 percent decline at grocery stores. Health and personal care store sales edged down 0.1 percent.

"Today's data suggests consumers are downshifting," Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, told reporters.

Following the report, U.S. stock futures remained in negative territory, and Treasury yields also fell.