Retail sales in the United States experienced a significant decline in May, as consumers became more cautious after a notable increase in spending in March, aimed at avoiding President Donald Trump’s extensive tariffs on nearly all imports.
According to the Commerce Department’s report released Tuesday, retail and restaurant sales dropped by 0.9% in May, following a slight decline of 0.1% in April. This downturn was largely influenced by a sharp decrease in auto sales, which had seen a surge in March as Americans rushed to purchase vehicles ahead of a 25% tariff on imported cars and parts. When excluding automotive sales, the overall retail figures reflected a 0.3% decrease.
The drop in sales aligns with a trend of declining consumer confidence recorded earlier in the year. However, there are positive indicators as inflation has been steadily decreasing, and unemployment remains low, which could support consistent consumer spending in the upcoming months, given the overall robustness of the economy.
Sales were particularly weak across various sectors, declining by 2.7% at home and garden centers, 0.6% at electronics and appliance stores, and 0.7% at grocery stores. Nevertheless, some areas showed resilience, with online retailers seeing a 0.9% increase, clothing stores a 0.8% rise, and furniture stores enjoying a 1.2% boost in sales.