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 NEW YORK (AP) - Americans shopped hesitantly in May, giving retailers some relief from a dismal showing in April but still raising questions about how strong consumer spending will be in the months ahead.
As the nation's merchants reported results Thursday, it was clear that higher gas prices and the slumping housing market are affecting how consumers spend. Sales were disappointing in a cross-section of the industry, including Wal-Mart Stores Inc., Macy's Inc. and Abercrombie & Fitch Co.
"This should have been a stronger performance because there should have been some pent-up demand. The weather was even nice," said John Morris, managing director at Wachovia Securities. "To me, this was a real litmus test, and retailers failed that litmus test. It's telling me where the consumer stands and the consumer is on weak legs."
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