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US retail sales rose in May as consumers focused on essential purchases amid the waning impact of large tax refunds.
Revenue gained 0.9% – adjusted for seasonal variation – from the previous month to $763.7 billion, according to data the US Census Bureau released Wednesday. Sales increased for the eighth consecutive month, despite rising gas prices and ongoing inflation.
“Retail sales maintained momentum in May, driven by a resilient labor market and consumers’ continued willingness to spend on retail goods despite pressure from elevated gas prices, tariffs and the conflict in the Middle East,” said National Retail Federation (NRF) CEO Matthew Shay. “As support from this year’s large tax refunds fades, consumers are prioritizing essentials and finding creative ways to stretch their household budgets.”
Sales were up 7% from May last year, while those for the March to May period improved 5% year on year, the Census Bureau reported.
The NRF, which tracks consumer spending through credit- and debit-card purchases rather than survey-based estimates, stated that sales in May improved 0.4% compared with the previous month.
Eight of nine categories the NRF monitors saw year-on-year gains. The clothing and accessories segment, which includes jewelry, grew 10% year on year and increased 0.6% versus April. The building and garden supply-stores segment was the only one to record a year-on-year decline, falling 1.9%.
Image: People at a shopping mall. (Shutterstock)
