US retail sales growth slows in May amid tariff uncertainty: NRF

Total retail sales excluding autos and fuel increased 0.49 per cent month over month and 4.44 per cent year over year in May, compared to April's stronger gains of 0.72 per cent and 6.76 per cent, respectively, as consumers pulled back ahead of expected tariffs, according to the latest CNBC/NRF Retail Monitor powered by Affinity Solutions.
Clothing and accessories stores also saw healthy performance, rising 0.67 per cent month over month and 3.21 per cent year over year.
US retail sales rose 0.49 per cent month over month and 4.44 per cent year over year in May, slowing from April's stronger pace, as consumers eased spending ahead of expected tariffs. Core retail sales grew 0.23 per cent monthly and 4.2 per cent annually. Digital products surged 28.04 per cent year over year, while clothing rose 3.21 per cent. Year-to-date sales remain robust.
Core retail sales—which exclude restaurants, automobile dealers, and fuel—rose 0.23 per cent month over month and 4.2 per cent year over year, down from April's respective growth rates of 0.9 per cent and 7.11 per cent, the National Retail Federation (NRF) said in a media release.
Among individual segments, digital products led with a sharp 1.81 per cent monthly gain and a substantial 28.04 per cent year-over-year increase. In contrast, furniture and home furnishings posted a 0.24 per cent monthly decline and were down 0.1 per cent from a year earlier.
For the first five months of 2025, total retail sales rose 4.95 per cent year over year, while core sales increased 5.24 per cent.
'The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating,' NRF president and CEO Matthew Shay said. 'While momentum remains, the nature of consumer spending is shifting as economic uncertainty increases. Consumer fundamentals haven't been damaged yet, and a slowing-but-still-growing job market is supporting household priorities ahead of any meaningful price increases in the coming months.'
Fibre2Fashion News Desk (KD)

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