U.S. Retail Sales Hold Up in May as Consumer Spending Remains Resilient

Consumer spending in the United States remained resilient in May, with retail sales extending their streak of monthly gains despite ongoing economic pressures such as higher fuel costs, tariffs and geopolitical uncertainty. The continued growth underscores that household demand for goods has stayed firm even as consumers navigate elevated living costs.

The latest CNBC/NRF Retail Monitor shows that total retail sales—excluding automobile dealers and fuel stations—increased by 0.42% from the previous month and were up 7.19% year-over-year. Those figures mark an acceleration from April, when monthly sales rose 0.34% and were 5.73% higher than a year earlier. Taken together, the data point to steady momentum in retail activity through the spring.

A closely watched gauge, core retail sales—which further exclude restaurants along with autos and gas stations—also recorded solid gains. Core sales climbed 0.39% month-on-month and were 6.98% above their level in the same month a year earlier. Across the first five months of the year, retail sales are tracking more than 6% ahead of the same period in the prior year, reinforcing the idea that consumer demand has been a persistent engine for growth.

Industry leaders attribute this resilience to a combination of a strong labour market and steady household spending patterns. Many consumers continue to prioritize spending on goods, supporting retailers even as some pockets of the economy face headwinds from higher energy prices and shifting international trade conditions. That broad-based demand has helped sustain retail revenues across multiple segments.

National Retail Federation President and CEO Matthew Shay highlighted how retailers have been proactively managing supply chains and inventory costs. By tightening logistics and adjusting inventory plans, many retailers have been able to limit price pressures for shoppers despite volatile external factors. Shay also noted that retail growth has remained robust even as the one-time boost from larger tax refunds earlier in the year has gradually diminished.

Category-level performance was varied but generally positive. Electronics and appliances were standout performers, posting annual growth approaching 12%. Apparel sales also showed strength, rising more than 10% year-over-year. Health and personal care products recorded gains close to 9%, reflecting continued consumer demand across essential categories.

Other segments such as sporting goods, general merchandise, grocery products and digital retail channels delivered healthy year-on-year increases, with growth rates ranging roughly from 6% to 8.6%. Those gains illustrate that consumer spending has been broadly distributed rather than concentrated in only a few categories.

Not all categories fared well: building materials and garden supplies were the only group to show weakness, declining on both a monthly and annual basis. That softness suggests a pullback in home-improvement-related purchases, which can be sensitive to shifts in consumer priorities and housing market trends.

Taken as a whole, the May figures reinforce the resilience of the U.S. consumer and signal that retail activity remained on a positive trajectory heading into the second half of the year. While risks remain—from energy price swings to geopolitical developments and trade policy—current retail trends point to sustained consumer support for economic activity.

Looking ahead, retailers and policymakers will be watching whether this momentum persists as temporary factors fade and new pressures emerge. For now, the combination of steady household spending and proactive retail management of supply chains appears to be keeping sales growth intact, helping to underpin broader economic stability.