New York City Retail sales are expected to be up significantly in May, but erratic consumer spending is also predicted to trend upward.
According to a report by Reuters late Monday, analysts expect May same-store sales to be up 3.8%, compared with a decline of 4.8% last year, according to Thomson Reuters data. Standard & Poor's expects a 3.4% increase, or 2.5% excluding fuel.
Retailers saw just a 0.5% increase in April.
Despite that shoppers are starting to spend again on more luxury purchases as opposed to just the basics, they remain choosy about where and when they spend. "Overall, we're still going to see improvements for all of retail, but the volatility just shows we're not out of the woods yet," Linda Tsai, specialty retail apparel senior analyst for research and trading firm MKM Partners, told Reuters. "I don't think it signals doom, but right now it's just a little bit slower."
The International Council of Shopping Centers cut its May sales outlook, expecting same-store sales to rise 2% to 2.5%, down from a prior forecast of 3.5%.