Retail sales fell 0.9% in May, worse than expected as consumers pulled back
UNITED STATES, JUN 17 – U.S. retail sales dropped 0.9% in May, the largest decline since January, as consumers pulled back after a tariff-driven spending surge earlier this year, Commerce Department data showed.
- U.S. retail sales dropped 0.9% in May 2025, marking the second consecutive monthly decline amid weaker consumer spending.
- This decline followed the April implementation of a 25% tariff on imported motor vehicles and trucks, which contributed to rising consumer caution and tariff anxiety.
- Sales of vehicles and related components dropped by 3.5% in May, while retail spending excluding more volatile categories such as automobiles, fuel, building supplies, and dining out increased by 0.4%, indicating targeted consumer purchasing.
- Consumer prices increased 2.4% year-over-year in May, with CFO Steven Fasching saying their company expects to absorb some tariff costs despite price hikes at retailers such as Walmart and Lululemon.
- The data suggests consumers are downshifting spending but not halting it, indicating moderate consumption growth may continue amid ongoing tariff pressures and economic uncertainty.
141 Articles
141 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.
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