Retail Sales See Record Plunge, Falling Far More Than Predicted
May 15, 2020
Consumer spending tumbled by the biggest amount ever in April, falling 16.4%. The decline was far worse than economists had predicted, forecasting a drop of 12.3%. That number would have been a new record, and already a substantial increase from March’s 8.3%
Consumer spending is the backbone of the American economy and accounts for more than two-thirds of the nation’s total GDP.
The drops were across the board, but clothing stores took the biggest hit, with sales falling a staggering 78.8%. Electronics and appliances, as well as furniture, also saw massive drops.
Nonstore retailers, such as e-commerce companies like Amazon, were the only winners, with sales up 8.4% for the month.