Cars, gas may have slowed U.S. sales in May

Sales at retailers probably fell in May as Americans bought fewer cars and elevated gasoline costs restrained consumers, reports may show this week.

The 0.5 percent drop in purchases, the first decline in 11 months, would follow a 0.5 percent gain in April, according to the median forecast of 62 economists surveyed by Bloomberg News ahead of Commerce Department data due out Tuesday.

Other reports may show inflation eased and manufacturing expanded.

Chains including Limited Brands Inc. missed analysts' estimates for May. A decline in fuel costs at the end of the month and a factory rebound from the temporary effects of the disaster in Japan signal economic growth may pick up in the last six months of 2011.

"The second half should certainly look better," said Jim O'Sullivan, chief economist at MF Global Inc. in New York. "The drag from gasoline prices will start to fade," he said. "Much of the weakening in May retail sales is the plunge in autos, and there are reasons not to extrapolate from the numbers."

The retail report may also show sales excluding automobiles climbed 0.3 percent last month after rising 0.6 percent in April, according to the economists surveyed.