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US core retail sales hold their own

Jun 20, 2025 United States

Continued growth in core retail sales in May was shown by data released by the US Census Bureau, despite a downturn in overall sales amid fluctuating tariffs, said the National Retail Federation

According to the US Census Bureau, overall retail sales decreased by 0.9% seasonally adjusted month-on-month in May but increased by 3.3% unadjusted year-on-year. This compares with a 0.1% decrease and a 5% increase, respectively, in April.

Excluding automobile dealers, gasoline stations and restaurants (core retail sales as defined by the NRF), sales in May increased by 0.1% seasonally adjusted month-over-month and by 3.9% unadjusted year-over-year. Overall, core sales increased by 4.4% year-over-year based on a three-month moving average, and by 3.9% in the first five months of the year.

“Despite a soft labour market, aggregate consumer spending has been supported by wage gains and an improvement in the stock market. Consumers are seeing their way through the uncertainty with trade policies, 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”, commented Jack Kleinhenz, Chief Economist at National Retail Federation (NRF).

The CNBC/NRF Retail Monitor had already reported that core retail sales had increased by 0.23% (seasonally adjusted) month-over-month in May, and by 4.2% (unadjusted) year-over-year. This is compared with increases of 0.9% and 7.11%, respectively, in April.

Image Credits: gjepc.org

United States Economy Organisations Retail Sales