Retail sales in US steady but inflation threat grows

Yahoo3 days ago

Retail sales data from the U.S. Census Bureau show that core retail spending continued to rise in May, even as overall retail sales slipped.
The figures suggest American consumers are managing in the face of trade policy uncertainty, though economists warn that inflation tied to tariffs could take hold later in the year.
According to the Census Bureau, overall retail sales dropped by 0.9% in May compared to April, seasonally adjusted. However, sales were still 3.3% higher than in May 2024, unadjusted for seasonal variation.
Core retail sales — excluding vehicles, fuel, and food services — rose by 0.1% month over month and climbed 3.9% year over year.
The National Retail Federation (NRF), which tracks these core categories to gauge consumer spending on discretionary goods, reported a 4.4% year-over-year increase based on a three-month moving average.
Sales in the first five months of 2025 were also up 3.9% compared to the same period in 2024.
NRF Chief Economist Jack Kleinhenz noted that the current growth mirrors last year's pace and is supported by rising wages and an improved stock market. However, he warned that inflation linked to tariffs on imported goods could start to impact household budgets in the coming months.
'Consumers are seeing their way through the uncertainty with trade policies,' Kleinhenz said, 'but I expect the inflation associated with tariffs to be felt later this year. Consumers remain very price sensitive, and those costs are likely to weigh heavily on consumer budgets.'
Although consumers appear resilient for now, the long-term effects of trade tensions and price increases remain a concern for retailers and economists alike.
Separate data from the CNBC/NRF Retail Monitor, based on transaction data from Affinity Solutions, indicated that core retail sales rose by 0.23% month over month in May and 4.2% year over year.
This represents a slowdown from April's figures, which showed growth of 0.9% month over month and 7.11% year over year.
The trend suggests that while consumer demand remains strong, spending may begin to cool as households adjust to potential cost increases and economic uncertainty.
The NRF continues to monitor monthly retail sales data closely and provides annual forecasts, including for critical shopping periods like the holiday season.
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"Retail sales in US steady but inflation threat grows" was originally created and published by Retail Insight Network, a GlobalData owned brand.
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Tesla releases new details about its next big deal

Miami Herald

9 hours ago

Miami Herald

Tesla releases new details about its next big deal

Rumors have been swirling for weeks as Tesla nears the launch of its next big idea - robotaxi - in Austin, Texas. The robotaxi hype hasn't reached the fever pitch of the Cybertruck, Tesla's last big idea, but if it gets this right, robotaxi has the chance to transform not just Tesla, but driving itself. Related: Tesla robotaxi launch hits major speed bump Tesla is admittedly slow-walking the rollout with CEO Elon Musk telling CNBC, "It's prudent for us to start with a small number, confirm that things are going well, and then scale it up." Tesla says it will have just 10 robotaxis on the street at launch. The company has already been testing its system, however. Earlier this year, Tesla said that its FSD system has driven a cumulative total of 3.6 billion miles, nearly triple the 1.3 billion cumulative miles it reported a year ago. But the public may not trust the autonomous vehicles yet. "Consumers are skeptical of the full self-driving (FSD) technology that undergirds the robotaxi proposition, with 60% considering Tesla's full self-driving 'unsafe,' 77% unwilling to utilize full self-driving technology, and a substantial share (48%) believing full self-driving should be illegal," the May 2025 edition of the Electric Vehicle Intelligence Report (EVIR) said. Self-driving Teslas have already been spotted on city streets with a human riding shotgun ahead of the program's official launch. And now Tesla is confirming that humans will be a fixture as it goes forward. Image source: vanTesla won't be leaving passengers in their Austin robotaxis alone, as the company plans to have a "safety monitor" sitting in the front seat during drives. Musk has claimed in the past that once the robotaxi program is up and running, Tesla owners would be able to earn passive income by allowing their Teslas to operate autonomously as taxis, without human intervention. However, the "safety monitor" isn't an abnormal safety feature for an autonomous vehicle. Waymo tested its vehicles for six months with a driver and for six months without one in Austin before it launched its commercial service earlier this year, according to Electrek. Related: Tesla takes drastic measures to keep robotaxi plans secret A safety monitor is just one of the robotaxis' safety requirements. Riders must agree to a TOS agreement, must have a debit or credit card on file, and can only request rides via the app between 6 a.m. and 12 a.m. within the geofenced area where it's allowed to operate. That geofenced area limits where cars can travel and changes based on the time of day. Only invited users are allowed to download and use the Robotaxi app. While the Cybertruck has had a lot of hype, it has been a massive flop for Tesla. A backlog of reservations helped push Cybertruck out with a lot of momentum, but it can only be described as an epic failure regarding sales. Tesla sold just 7,100 Cybertrucks in the first three months of the year, according to the Wall Street Journal, nearly half of the 13,000 it sold in the fourth quarter of 2024. Tesla sold fewer than 40,000 Cybertrucks in 2024, making Elon Musk's far-fetched prediction of over half a million annual sales look farcical. Electrek reports that Tesla is sitting on $800 million of 10,000 Cybertrucks it can't sell. More on Tesla: Tesla claims rival startup is built on stolen trade secrets10,000 people join crazy Tesla class action lawsuitTesla execs question Elon Musk over controversial X post Mix that with the dismal quarter Tesla just reported, and Musk has a lot of work to do. It reported its worst quarter in years, with auto sales revenue dropping 20% amid falling demand in the U.S., Europe, and China. In the first quarter, deliveries fell 13% year over year to 36,681 vehicles from 386,810. Musk has been promising the robotaxi since at least 2016. Now that it is finally ready to debut, the company needs Musk's latest big swing to be a home run. Related: Tesla's robotaxi rollout is alarming the public, new report shows The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.