Spending at retailers rose 0.3% in May despite U.S. consumers dealing with inflation concerns, according to Commerce Department data.
The small jump was not what economists had been expecting, according to an AP report.
One factor may be the fact gas prices have dropped and provided more discretionary funding for shoppers.
A Circana report released last week revealed U.S. retail sales revenue increased 2% compared to a year ago with growth coming from food and beverage spending primarily, according to a press release on the findings.
"Consumers are engaged and spending, just not at full throttle," Marshal Cohen, chief retail industry advisor for Circana, said in the release. "Directional spending shifts, coupled with unemployment elevation and recent air quality concerns in the U.S. could jolt a significant shift in consumer behavior. But for the time being, consumers continue to seek little luxuries and are willing to pay a premium for most of their purchases."
Year-to-date through May, sales of apparel, technology and other traditionally high-volume categories, declined from a year ago, but consumers did boost spending on several industries.
Prestige beauty was the only industry to exceed the sales growth noted in the food and beverage industry. Sales revenue increased by16% while the mass-market beauty sales grew by 9%.
"Price is certainly part of today's consumer spending story, but it is not the leading force," Cohen said in the release. "Consumers are willing to spend if they are presented with something that's new or delivers greater value, extending the window of opportunity for manufacturers and retailers to make a move and elevate consumer engagement before the tide turns."