Retail Sales Expected to Show Record Increase for May 2020

In the wake of increased employment, the US is now poised to announce another positive development: retail sales have risen 8.0% last May. This further solidifies the fact that the US economy is beginning its road to recovery. This is the highest increase posted by the country, beating the previous record of 6.7% in October 2001, which was the month following 9/11. 

Prior to the record numbers in May, retail sales fell in March by 8.3% and 16.4% in April, mainly due to the lockdown in major urban centers and the health advisory to stay indoors due to coronavirus. 

The reopening of most cities in the United States after a months-long lockdown, drove people to head for car dealerships (44% increase from April) and spent more on fuel (13%), clothes (188%) and bars and restaurants (33%). 

Analysts are seeing the US economy in the initial stage of V-shaped recovery, which is characterized as a sharp but short recession followed by a strong recovery.