US retail sales declined 0.9% in May, exceeding the expected 0.6% drop, according to data from the Commerce Department. Excluding items such as auto dealers and building materials suppliers, sales rose 0.4%.
The decline comes despite surveys showing that consumer sentiment improved in May. Instead, concerns over tariffs and geopolitical tensions weighed on spending.
Key drivers of the decline included falling gas sales and a decrease in energy prices. Motor vehicles and parts retailers were among those hit hard, with sales dropping 3.5%. On the other hand, miscellaneous retailers and online sales saw gains.
The data comes ahead of second-quarter GDP growth projections, which are expected to rebound from a 0.2% annualized pace in Q1. The Commerce Department also reported flat import prices and a decline in export prices.
Source: https://www.cnbc.com/2025/06/17/retail-sales-may-2025-.html