WASHINGTON — U.S. consumers continued to open their wallets in May, pushing retail sales higher for the eighth consecutive month, despite elevated gas prices, tariffs and ongoing uncertainty tied to the conflict in the Middle East, according to the latest CNBC/NRF Retail Monitor, powered by Affinity Solutions.
The report, released Tuesday by the National Retail Federation, showed broad-based growth across most retail categories, underscoring the resilience of consumer spending even as households face persistent economic pressures.
Total retail sales, excluding automobile dealers and gasoline stations, increased 0.42% on a seasonally adjusted month-over-month basis in May and rose 7.19% year over year. The gains followed increases of 0.34% month over month and 5.73% year over year in April.
Core retail sales, which exclude restaurants, auto dealers and gas stations, climbed 0.39% from April and were up 6.98% from May 2025. That followed gains of 0.34% month over month and 5.53% year over year in April.
“Retail sales maintained momentum in May, driven by a resilient labor market and consumers’ continued willingness to spend on retail goods despite pressure from elevated gas prices, tariffs and the conflict in the Middle East,” NRF President and CEO Matthew Shay said. “As support from this year’s large tax refunds fades, consumers are prioritizing essentials and finding creative ways to stretch their household budgets. To support them, retailers are actively engaging their supply chains and supplier networks to keep prices affordable."
The latest figures indicate that consumers remain willing to spend even as inflationary pressures persist and discretionary budgets remain under scrutiny. According to NRF, total retail sales for the first five months of 2026 were up 6.29% compared with the same period last year, while core retail sales increased 6.19%.
The strongest annual growth came from electronics and appliance stores, with sales up 11.59% year over year, edging up 0.05% from April. Clothing and accessories stores posted a 10.25% annual increase and a 0.6% monthly gain, while health and personal care stores saw sales rise 8.87% year over year and 0.45% month over month.
The health and personal care category's continued strength is notable among drug retailers and other health-focused merchants, reflecting sustained consumer demand for pharmacy, wellness, and personal care products.
Other categories also delivered solid results. Sporting goods, hobby, music, and book stores recorded an 8.59% year-over-year increase and a 0.25% monthly gain. General merchandise stores were up 8.28% year over year and 0.41% from April, while digital products, including e-books and electronic games, rose 7.79% year over year and 1.22% month over month.
Grocery and beverage stores continued to benefit from steady consumer spending, posting a 0.48% monthly increase and a 6.01% year-over-year gain.
Not every retail segment shared in the growth. Furniture and home furnishings stores declined 0.09% month over month, though sales remained 3.35% above year-ago levels. Building and garden supply stores were the weakest category, falling 0.38% from April and 1.88% compared with May 2025.
The CNBC/NRF Retail Monitor is based on anonymized credit and debit card purchase data compiled by Affinity Solutions. Unlike the Census Bureau’s monthly retail sales report, which is based on surveys and subject to revisions, the Retail Monitor uses actual transaction data and does not require monthly or annual revisions.
The report’s findings indicate that although consumers are becoming more selective in their spending, overall demand for retail goods remains healthy. Retailers, meanwhile, continue to focus on pricing, promotions and supply chain efficiency as they navigate a marketplace shaped by inflation concerns, trade policy uncertainty and shifting consumer priorities.
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