Consumer spending in the United States continued to show resilience in May, with retail sales recording their eighth consecutive month of growth despite ongoing economic pressures, including higher fuel costs, tariffs, and geopolitical uncertainty.
According to the latest CNBC/NRF Retail Monitor, total retail sales—excluding automobile dealers and fuel stations—increased by 0.42% compared with the previous month and rose 7.19% from a year earlier. The latest figures represent an acceleration from April’s monthly growth of 0.34% and annual increase of 5.73%, highlighting the sustained strength of consumer demand.
Core retail sales, which exclude restaurants in addition to auto dealers and gas stations, also posted healthy gains. The measure climbed 0.39% month-on-month and advanced 6.98% compared with May 2025. Overall, retail sales during the first five months of 2026 are tracking more than 6% above the same period last year.
Industry leaders attribute the continued momentum to a robust labour market and steady household spending patterns. While consumers continue to face challenges from elevated living costs and global economic uncertainty, spending on retail goods has remained largely unaffected, supporting broader economic activity.
National Retail Federation President and CEO Matthew Shay noted that retailers have worked aggressively to manage supply chains and inventory costs, helping limit price pressures for consumers even as external factors such as energy prices and international trade conditions remain volatile. He also pointed out that retail growth has persisted despite the gradual fading of the spending boost generated by larger tax refunds earlier in the year.
Among retail categories, electronics and appliances emerged as the strongest performers, recording annual growth of nearly 12%. Apparel sales also delivered robust results, rising more than 10% from a year earlier, while health and personal care products posted gains approaching 9%.
Other categories, including sporting goods, general merchandise, grocery products, and digital retail channels, registered healthy year-on-year growth ranging between 6% and 8.6%, reflecting broad-based consumer spending across multiple segments.
The only category to experience weakness was building materials and garden supplies, which declined on both a monthly and annual basis, suggesting softer demand in home improvement-related purchases.
The latest figures reinforce the resilience of the US consumer, a key driver of economic growth, and indicate that retail activity remains on a positive trajectory heading into the second half of 2026 despite ongoing economic headwinds.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
