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NRF Says Cool Weather and Wary Consumers Bring Lethargic May Retail Sales

WASHINGTON, DC, Jun 13, 2001/ --- The month of May brought flowers for Mother's Day, but little else that could bring consumers out of their slump and get them excited about shopping.

Responding to figures released today by the Census Bureau, the National Retail Federation (NRF) noted that all categories of merchandise showed the effects of unseasonably cool weather and the continuing sluggish economy in May.

Retail sales for the month remained listless, with total sales rising only 0.1 percent seasonally adjusted from April. Sales in the GAF category (general merchandise, apparel, furniture, home furnishings, electronics and appliance stores) were also weak in May -- declining 0.8 percent seasonally adjusted from the previous month, and advancing a modest 1.4 percent year-over-year.

"We expect sales to improve in the coming months as the economy begins to pick up steam and better weather stimulates seasonal merchandise," said NRF Chief Economist Rosalind Wells. "In the second half of the year, we expect that the aggressive interest rate-lowering moves made by the Fed will begin to have an effect on economic activity. The distribution of tax rebates to consumers over the next several months should also help buoy disposable income and consumer confidence -- and in turn, spending and retail sales."

Sales at general merchandise and apparel specialty stores were both up 2.4 percent compared to a year ago. Sales at furniture, home furnishing, electronic and appliance stores fell by 1.3 percent compared to a year ago.

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