U.S. Retail Sales Decline in May, Miss Expectations

Retail Sales in the United States fell by 0.9% in May to $715.4 billion, according to data released by the U.S. Census Bureau on Tuesday. This marked a sharper-than-expected decline, following the 1.5% decrease in April (revised from +0.1%). Analysts had expected a 0.7% contraction for May. On a yearly basis, retail sales were up 3.3%, down from 5% growth recorded in April.

Retail Sales Overview

The report highlighted that total sales for the period from March 2025 to May 2025 were up 4.5% compared to the same period a year ago. Retail trade sales were down 0.9% from April 2025, but still showed a 3.0% increase compared to the previous year. The month-over-month decline was attributed to lower sales in several categories, suggesting weaker consumer spending.

Import and Export Price Indexes Show Mixed Trends

Other data from the U.S. also showed mixed trends in trade prices. The Import Price Index remained unchanged on a monthly basis in May, while the Export Price Index fell by 0.9%, indicating a slight reduction in the prices of goods being exported from the U.S.

The decline in retail sales, coupled with the slowdown in export prices, reflects broader concerns about economic growth and consumer sentiment. The data may influence future economic policy decisions, particularly in the context of the Federal Reserve’s monetary stance, as weaker-than-expected consumer spending could signal cooling demand in the economy.