US EditionRetail sales fell 0.9% in May, worse than expected as consumers pulled back
- U.S. retail sales including food services dropped 0.9% in May 2025, marking the second consecutive month of decline according to Census Bureau data.
- The sales drop followed a surge in March car purchases ahead of a 25% tariff on imported vehicles, causing consumers to reduce spending amid tariff concerns and policy uncertainty.
- Sales in the motor vehicle and auto parts sector fell by 3.5% in May, while expenditures at grocery stores and dining establishments also decreased; however, retail sales excluding more variable categories experienced a 0.4% increase, indicating that consumers are selectively spending.
- Samuel Tombs highlighted that historically, the most significant increases in prices tend to occur in July, even though inflation rose by 2.4% year-over-year in May before tariffs had a major effect on costs.
- The data indicates cautious consumer behavior amid tariff anxiety and policy uncertainty, though economist forecasts see moderate consumer spending sustaining overall economic growth this quarter.
138 Articles
138 Articles
Weak U.S. retail sales, factory output signal slowing economy | Honolulu Star-Advertiser
WASHINGTON >> U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariff-related price hikes ebbed, but consumer spending remains supported by solid wage growth for now.
US retail sales post biggest drop of 2025 as tariffs and economic worries bite
Amid warnings of a grim second half of the year, US retail sales fell 0.9%. The worse-than-expected decline coincided with decline in manufacturing and loss of home-buyer sentiment to lowest in three years.
The Quad-City Times
Retail sales slide sharply as shoppers pull back
WASHINGTON — Retail sales fell sharply in May as consumers pulled back from a spending surge early this year to get ahead of President Donald Trump’s sweeping tariffs on almost all imports.
May retail sales drop more than expected
U.S. retail sales dropped 0.9% in May, more than the 0.6% many economists forecast. The steep decline follows a 0.1% decrease in April amid the uncertainty about the economy. Laila Maidan, tech and investing reporter for MarketWatch, joined CBS News to discuss the numbers.
U.S. retail sales post biggest drop in four months after Trump's tariffs take effect
U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariff-related price hikes ebbed, but consumer spending remains supported by solid wage growth for now.
Retail sales fell sharply in May as consumers pulled back after a spring buying spree to get ahead of President Donald Trump's tariffs on nearly all imports.
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