Retail sales grew again in May and helped drive a still-expanding economy, according to an analysis of U.S. Census Bureau data by the National Retail Federation (NRF).
The Census Bureau said overall retail sales in May were up 0.1% seasonally adjusted month over month and up 2.3% unadjusted year over year. That compared with a decrease of 0.2% month over month and an increase of 2.7% year over year in April.
May’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were up 0.3% seasonally adjusted month over month and up 2.9% unadjusted year over year. Core retail sales were up 3.5% year-over-year for the first five months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023.
“May’s retail sales give us a snapshot of a reasonably healthy consumer even though spending growth is fluctuating somewhat,” NRF Chief Economist Jack Kleinhenz said in a release. “These numbers indicate that the economy continues to expand at a solid pace. Job gains have remained strong, generally supporting consumers’ ability and willingness to spend. Inflation pressure has fallen, especially for retail goods, but higher prices for services continue to weigh on the minds of households.”
