May Retail Sales Fell 1.3 Percent as Americans Spend Less on Goods

A customer wears a mask as she waits to get a receipt at a register in a Target store in Vernon Hills, Ill., Sunday, May 23, 2021. AP Photo/Nam Y. Huh

NEW YORK—Retail sales fell in May, dragged down by a decline in auto sales and a shift by Americans to spend more on vacations and other services instead of goods.

Total sales dropped a seasonally adjusted 1.3 percent in May from the month before, the U.S. Commerce Department said Tuesday. Wall Street analysts expected a smaller decline of 0.5 percent.