US retail sales fall more than expected

(Sharecast News) - Retail sales in the United States declined more than expected in May as consumers scaled back for the second straight month following a spending surge before new trade tariffs took effect. Seasonally adjusted retail sales across the country fell by 0.9% last month to $715.4bn following a 1% fall in April, according to the Census Bureau.

This was the biggest monthly drop since January and tied for the largest decline since March 2023. The consensus forecast was for a fall of 0.7%.

In May, sales of motor vehicles and parts were down 3.5% over the month, while building materials sales fell 2.7%, food services sales were down 0.9% and electronics sales declined 0.6%.

Total retail sales had surged 1.5% in March as consumers stepped up purchases ahead of inflationary pressures due to introduction of tariffs in early-April.

Compared with May 2024, nationwide retail sales were up 3.3%, slowing from the 5.0% annual growth seen in April.