June 18th, 2025
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According to the Commerce Department, retail sales in the US decreased by 0.9% in May, after a 0.1% drop in April. This was mainly because car sales fell significantly, after many people bought cars in March to avoid President Trump's 25% tax on imported cars and parts. Even though people are less confident about the economy, steady prices and low unemployment could keep spending at a moderate level in the coming months. If we exclude sales from gas, cars, and restaurants, sales actually increased by 0.4% last month, which suggests people are still buying some non-essential items. While many types of stores saw big drops in sales, online stores, clothing stores, and furniture stores saw their sales go up. The decrease in retail sales is probably connected to worries about higher prices because of Trump's tariffs.
June 18th, 2025
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