Key Takeaways

• Sales beat expectations: U.S. retail sales rose to $763.7 billion in May, exceeding the 0.5% growth forecast.
• Prior month revised: April’s reading came in at a 0.5% expansion.
• Strong annual growth: Retail sales were up 6.9% year-on-year in May.
• Retail trade outperforms: Retail trade sales specifically rose 1.0% from April and 7.5% from a year ago.
• Nonstore retailers surge: Online and other nonstore retailers jumped 12.2% year-on-year — the standout category.
• Food services resilient: Restaurants and bars were up 2.7% from May 2025, signaling continued consumer confidence in discretionary spending.
• Fed implications: The stronger-than-expected reading adds to evidence of a resilient U.S. economy ahead of today’s Fed decision.

Retail sales in the United States increased to $763.7 billion in May, the U.S. Census Bureau reported on Wednesday. The print followed the 0.5% expansion recorded in the previous month and came in above market expectations of 0.5% growth. On a yearly basis, retail sales were up 6.9% during this period.

Retail trade sales were up 1.0% from April 2026 and up 7.5% from a year earlier. Nonstore retailers — which include e-commerce — surged 12.2% from a year ago, while food services and drinking places were up 2.7% from May 2025.