US retail sales rock solid with eighth consecutive month of growth

Retail sales have continued to perform well across the country despite elevated gas prices, tariffs, and the conflict in the Middle East making it difficult for consumers.

Data on retail sales for the month of May from the CNBC/NRF Retail Monitor showed that performance ensured an eighth consecutive month of growth.

Total retail sales, excluding automobile dealers and gasoline stations, were up 0.42% seasonally adjusted month-over-month and up 7.19% unadjusted year-over-year in May.

That compared with increases of 0.34% month-over-month and 5.73% year-over-year in April.

The Retail Monitor calculation of core retail sales, which excludes restaurants in addition to auto dealers and gas stations, was up 0.39% month-over-month in May and was up 6.98% year-over-year.

That compared with increases of 0.34% month-over-month and 5.53% year-over-year in April.

Total sales were up 6.29% year-over-year during the first five months of the year, and core sales were up 6.19%.

Unlike survey-based numbers collected by the Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.

April sales were up in all but one of nine categories on a yearly basis, led by electronics and appliance stores, clothing stores, and health and personal care stores, and were up in all but two categories on a monthly basis.

Reflecting on the data, NRF President and CEO, Matthew Shay, explained: “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.”

Adding: “As support from this year’s large tax refunds fades, consumers are prioritizing essentials and finding creative ways to stretch their household budgets. To support them, retailers are actively engaging their supply chains and supplier networks to keep prices affordable.”