New data from ING highlights growing caution among US consumers, with retail sales falling for a second consecutive month in May. This slowdown may have implications for B2B players in the interior design and furniture sector, especially those reliant on US consumer-driven demand.
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'US retail sales fell 0.9% month-on-month in May,' with April's figure also revised down to a -0.1% contraction. The decline was led by weak performance in auto sales (-3.5%), building materials (-2.7%), and gasoline (-2%), all critical segments for broader economic activity. ING noted that "tariff front running led to a surge in auto sales in March, but this has now completely reversed."
While clothing (+0.8%), miscellaneous goods (+2.9%) and non-store retail (+0.9%) showed resilience, the broader picture reflects waning consumer confidence. ING analysts caution that 'households are nervous that tariff-induced price hikes will squeeze spending power,' while the jobs market outlook is making consumers more wary.
From a B2B interiors perspective, the drop in building material sales and the reversal of earlier spending surges point to a cooling residential and commercial fit-out pipeline. The 'control group' of retail sales, which excludes volatile categories like food, gasoline, autos, and building materials, rose 0.4% in May, offering some modest optimism for service-related spending.
Still, ING concludes that 'consumer spending will continue to cool through this year,' warning that in real, price-adjusted terms, 'it paints a weak picture that reflects subdued consumer confidence readings.'
As retail accounts for just 42% of total US consumer spending, shifts in purchasing behaviour, especially on big-ticket or home-related items, may ripple into furnishing, lighting, and decor procurement cycles, requiring cautious planning from interior brands and suppliers targeting the US market.
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