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Retail sales fell 0.9% in May, worse than expected as consumers pulled back

  • U.S. retail sales fell 0.9% in May 2025, marking the second consecutive month of decline amid cautious consumer behavior.
  • This decline followed earlier strong car and auto parts spending in March and reflects tariff anxiety, policy uncertainty, and softening consumer confidence.
  • Sales in the automotive sector declined by 3.5%, while retail sales outside of vehicle categories decreased by 0.3%, indicating varied effects across different market segments.
  • Consumer prices rose 2.4% year-over-year in May, with brands like Lululemon raising prices and CFO Steven Fasching stating they expect to absorb some tariff costs.
  • The sales decline and steady inflation amid low unemployment suggest growing consumer selectivity, implying potential economic caution if spending weakens further.
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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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NBC Miami broke the news in Miami, United States on Tuesday, June 17, 2025.
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