Retail sales in the United States increased 0.9% month‑over‑month in May, reaching $763.7 billion, well above the 0.5% forecast and up from 0.4% in April. This uptick indicates that consumer spending has stayed robust despite higher inflation, elevated borrowing costs, and rising uncertainty about the broader economy.
When automobiles are excluded, sales rose 0.8% month‑over‑month to $623.4 billion, surpassing the 0.5% expectation. Excluding gasoline, sales grew 0.7% to $700.0 billion, showing that the gain was not solely attributable to higher fuel prices. Cumulatively, retail sales from March through May were 5.3% higher than a year earlier.
Since household consumption represents about two‑thirds of U.S. economic activity, these data reinforce the view that domestic demand continues to serve as a crucial driver of growth.
