US retail sales slipped 0.5% last month following a little revised 1.5% spurt in April. Consensus expectations had been for a 0.2% decline.

The 0.2% decline in sales excluding motor vehicles followed an upwardly revised 1.4% jump in April. Consensus expectations had been for a 0.2% increase. Some of the weakness was due to a 1.6% decline in gasoline service station sales (+13.4% y/y). Nonauto retail sales less gasoline in May were about unchanged (6.6% y/y).

Spending on discretionary items was quite mixed. General merchandise store sales fell 0.1% (+4.9% y/y) after a sharp 1.3% jump in April. Apparel store sales dropped 0.8% (+5.8% y/y) but sales at furniture and electronics sales increased 0.2% (+6.7% y/y).

Building material store sales added 0.5% (9.2% y/y) to the very sharp increases of the prior two months.

Sales of nonstore retailers (internet and catalogue) dropped 1.1% (11.9% y/y) but April's gain was revised sharply higher to 1.2%.