Amid warnings of a grim second half of the year, US retail sales fell 0.9%. The worse-than-expected decline coincided with decline in manufacturing and loss of home-buyer sentiment to lowest in three years.

Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump's sweeping tariffs on nearly all imports.

U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariffs-related price hikes ebbed, but consumer spending remained supported by solid wage growth.