US Retail Sales Growth Slows Amid Tariff Uncertainty May 2025

U.S. retail sales continued to grow in May 2025 but at a slower pace compared to previous months, reflecting consumers' pullback ahead of expected tariffs and growing economic uncertainty. Total retail sales excluding autos and fuel increased 0.49% month over month and 4.44% year over year, down from April's stronger gains. Core retail sales, which exclude restaurants, automobile dealers, and fuel, rose 0.23% monthly and 4.2% annually, with year-to-date sales remaining robust. Digital products led growth with a 28% year-over-year increase, followed by gains in sporting goods, general merchandise, grocery, health and personal care, and clothing stores, while furniture, building supplies, and electronics showed declines. National Retail Federation President Matthew Shay noted the fading pull-forward in consumer demand ahead of tariffs, with consumer fundamentals still intact and a slowing but growing job market supporting spending. Retailers remain cautious as consumers adjust their behavior amidst tariff uncertainties and economic pressures.