US: Retail sales hesitantly grow in May as tariff uncertainty lingers

New figures released by the National Retail Federation (NRF), have shown that despite retail sales continuing on an upward trend throughout May, a sense of uncertainty is lingering in the wake of tariff adjustments.

In the US, total retail sales, excluding automobiles and gasoline, rose marginally by 0.49 percent month-over-month and 4.44 percent year-over-year during the month, according to the organisation’s Retail Monitor.

This was slightly down on the 0.72 percent monthly uptick seen in April, and a sharper decrease on last month’s YoY 6.76 percent rise.

Core sales, which also exclude restaurants, saw a slower increase of 0.23 percent MoM, while YoY they rose 4.2 percent.

For the first five months of the year, total sales were up 4.95 percent YoY as core sales rose 5.24 percent.

Among all product categories, apart from digital, clothing and accessories performed the strongest on a monthly basis. Sales at such stores rose 0.67 percent MoM, compared to a 3.21 percent increase YoY.

Speaking on the data, NRF president and chief executive officer, Matthew Shay, said: “The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating.

“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.”