US Retail Sales Increased in May: NRF

NRF President and CEO Matthew Shay highlighted that consumers maintained their spending on essential household items in May, supported by positive developments in the job market and wage growth. Recognising the financial pressures faced by cost-conscious consumers, retailers responded by offering competitive pricing, a diverse range of products, and convenient shopping options to help families manage their budgets effectively.

NRF Chief Economist Jack Kleinhenz said there were no signs of a sharp economic slowdown despite challenges related to inflation and interest rates. While certain categories experienced a slight decline compared to the previous year, the overall data confirmed that consumers retained the capacity to spend.

Job growth and wage increases provided stability, although inflation continued to impact consumer income. Kleinhenz noted that May traditionally sees strong retail activity due to peak spring shopping, and favourable weather conditions including above-average temperatures and below-average precipitation likely contributed to the positive performance.

According to the U.S. Census Bureau, overall retail sales in May increased by 0.3% compared to April and 1.6% on a year-over-year basis. In April, sales rose by 0.4% month over month and 1.2% year over year.

NRF's retail sales calculation, which focuses on core retail by excluding automobile dealers, gasoline stations, and restaurants, indicated a 0.4% increase in May compared to April, and a significant 4.4% increase on an unadjusted year-over-year basis.

In April, sales showed a month-over-month growth of 0.6% and a year-over-year increase of 1.4%. NRF's three-month moving average, as of May, reflected a 3% unadjusted year-over-year rise, and sales for the first five months of the year showed a solid 4.2% increase compared to the previous year.