Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Economic Watch: Retail Sales Post Another Solid Gain

U.S. retail sales rose a stronger-than-expected 0.5% in May from the month before, building on a strong April gain, which could lead to better expectations of overall second quarter economic growth.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
June 14, 2016
Economic Watch: Retail Sales Post Another Solid Gain

 

2 min to read


U.S. retail sales rose a stronger-than-expected 0.5% in May from the month before, building on a strong April gain, which could lead to better expectations of overall second quarter economic growth.

The new Commerce Department report beat Wall Street expectations of a 0.3% increase for May and follows an unrevised 1.3% jump in April, for the second straight monthly gain. Compared to May 2015, retail sales improved 2.5%.

Ad Loading...

Retail sales are important for trucking for several reasons. They drive about two-thirds of all U.S. economic activity, and retail freight spends at least part of its life on trucks before making it to store shelves.

Excluding the auto sector, retail sales rose 0.4%. Retail sales minus autos, gas stations, and building material stores also posted a 0.4% increase, which builds on a upwardly revised 1% jump in April, up from a first reported 0.9% increase.

Strong increases over the last two months have left overall sales up an annualized 5.7% to-date in the second quarter. “Core sales,” which feed directly into the government quarterly real consumer spending estimates, are up a similar 5.9% second quarter to-date, according to RBC Economics.

“The gain in retail sales in May was unexpectedly solid and built on an outsized April increase to leave upside risk to our forecast for a 3.2% annualized gain in Q2 real personal consumption expenditures, up from 1.9% in the first quarter, with a 3.5% rate of increase now looking more likely,” said RBC Senior Economist Nathan Janzen.

He said the weak 38,000 job gain in May reported last week could point to risk of slower economic growth going forward. However, the slower employment growth came from higher wages, leaving aggregate labor income still rising at a solid rate.

Ad Loading...

“We expect part of the downward employment surprise in the month simply reflected monthly volatility,” Janzen said. “Part was also likely indicative of a slower underlying trend, but reflecting labor supply rather than demand factors that have offsetting upward implications for wages. We assume, on balance, somewhat slower employment gains going forward than the 200,000 and over increases we have become used to in recent years, but alongside continued wage growth that will leave a still supportive backdrop for household incomes and spending.”

With two straight months of healthy retail sales, an increasing number of analysts are revising upward their estimates for second quarter gross domestic product growth, which posted just an 0.8% annual improvement in the first quarter, according to the most recent government numbers.

More Fleet Management

2026 Mack Anthem rolls off the assembly line
Fleet Managementby News/Media ReleaseFebruary 3, 2026

Mack Financial Services Launches Physical Damage Insurance For All Makes

Mack Financial Services has introduced the Rolling Asset Program, offering physical damage insurance for all makes and models within a customer's fleet.

Read More →
Illustration of phishing email with trucks in background
Fleet Managementby News/Media ReleaseFebruary 3, 2026

New Phishing Scheme Targets Motor Carriers, FMCSA Warns

Beware of a new phishing scheme targeting motor carriers. Scammers are sending emails posing as FMCSA or DOT officials to steal data.

Read More →
Daimler-Class8 partnership.
Fleet Managementby News/Media ReleaseFebruary 2, 2026

DTNA Partners with Class8 to Expand Digital Services for Freightliner Owner-Operators

A new partnership brings free wireless ELD service plus load optimization and dispatch planning tools to fourth- and fifth-generation Freightliner Cascadia customers, with broader model availability planned through 2026.

Read More →
Ad Loading...
SponsoredFebruary 1, 2026

Reducing Fleet Downtime with Advanced Diagnostics

This white paper examines how advanced commercial vehicle diagnostics can significantly reduce fleet downtime as heavy duty vehicles become more complex. It shows how Autel’s CV diagnostic tools enable in-house troubleshooting, preventive maintenance, and faster repairs, helping fleets cut emissions-related downtime, reduce dealer dependence, and improve overall vehicle uptime and operating costs.

Read More →
SponsoredFebruary 1, 2026

Stop Watching Footage, Start Driving Results

6 intelligent dashcam tactics to improve safety and boost ROI

Read More →
M&A illustration with Werner and FirstFleet logos
Fleet Managementby Deborah LockridgeJanuary 29, 2026

Werner Expands Dedicated Fleet Nearly 50% With FirstFleet Acquisition

The $283 million acquisition of FirstFleet makes Werner the fifth-largest dedicated carrier and pushes more than half of its revenue into contract freight.

Read More →
Ad Loading...
Bobit Business Media B2X Rewards.
Fleet Managementby News/Media ReleaseJanuary 29, 2026

Bobit Business Media Launches B2X Rewards Engagement Program

B2X Rewards is a new, gamified rewards program aimed at driving deeper engagement across BBM’s digital platforms, newsletters, events, and TheFleetSource.com.

Read More →
Trucking Trends series graphic
Fleet Managementby Deborah LockridgeJanuary 29, 2026

AI is Reshaping Trucking in 2026, from the Back Office to the Shop

Trucking’s biggest technology shifts in 2026 have one thing in common: artificial intelligence.

Read More →
Column graphic illustration with Deborah Lockridge head shot and a small fleet truck in the background
Fleet Managementby Deborah LockridgeJanuary 27, 2026

Why Small Trucking Fleets Are Still Standing [Commentary]

Why discipline, relationships, and focus have mattered more than size for smaller trucking fleets during the freight recession.

Read More →
Ad Loading...
Fleet Managementby Deborah LockridgeJanuary 23, 2026

Cargo Theft Is Surging. A Bill in Congress Could Help. [Video]

Cargo theft losses hit $725 million last year. In this HDT Talks Trucking Short Take video, Scott Cornell explains how a bill moving in Congress could bring federal tracking, enforcement, and prosecutions to help address the problem.

Read More →