Consumer Spending Holds Steady in May, Retail Monitor Shows
Concerns over tariffs and other economic conditions did little to slow consumer spending in May as retail sales in the year’s fifth month grew, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions.
Total retail sales, excluding automobiles and gasoline, were up 0.49% seasonally adjusted month-over-month and up 4.44% unadjusted year-over-year in May, according to the Retail Monitor. That compares with increases of 0.72% month-over-month and 6.76% year-over-year in April.
The Retail Monitor calculation of core retail sales (excluding restaurants, in addition to automobile dealers and gasoline stations) was up 0.23% month-over-month in May and up 4.2% year-over-year. That compares with increases of 0.9% month-over-month and 7.11% year-over-year in April.
Total sales were up 4.95% year-over-year for the first five months of the year, and core sales were up 5.24%.
“The data for May indicates that the pull-forward in consumer demand ahead of tariffs is likely dissipating,” said Matthew Shay, president and CEO of the National Retail Federation. “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.”
Unlike survey-based numbers collected by the Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
May sales were up in seven out of nine categories on a yearly basis, led by digital products, sporting goods stores, and general merchandise stores, and were up in six categories on a monthly basis. Specifics from key sectors include:
- Digital products were up 1.81% month-over-month seasonally adjusted and up 28.04% year-over-year unadjusted.
- Sporting goods, hobby, music, and book stores were up 0.42% month-over-month seasonally adjusted and up 8.21% year-over-year unadjusted.
- General merchandise stores were up 0.4% month-over-month seasonally adjusted and up 4.63% year-over-year unadjusted.
- Grocery and beverage stores were up 0.46% month-over-month seasonally adjusted and up 4.53% year-over-year unadjusted.
- Health and personal care stores were up 0.06% month-over-month seasonally adjusted and up 3.85% year-over-year unadjusted.
- Clothing and accessories stores were up 0.67% month-over-month seasonally adjusted and up 3.21% year-over-year unadjusted.
- Electronics and appliance stores were down 1.98% month-over-month seasonally adjusted but up 2.58% year-over-year unadjusted.
- Furniture and home furnishings stores were down 0.24% month-over-month seasonally adjusted and down 0.1% year-over-year unadjusted.
- Building and garden supply stores were down 2.3% month-over-month seasonally adjusted and down 7.31% year-over-year unadjusted.
