Data released by the U.S. Census Bureau today indicates that retail sales grew in May, contributing to an expanding economy, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz.

“May’s retail sales give us a snapshot of a reasonably healthy consumer even though spending growth is fluctuating somewhat,” Kleinhenz said. “These numbers indicate that the economy continues to expand at a solid pace. Job gains have remained strong, generally supporting consumers’ ability and willingness to spend. Inflation pressure has fallen, especially for retail goods, but higher prices for services continue to weigh on the minds of households.”

The Census Bureau reported that overall retail sales in May increased by 0.1% seasonally adjusted month over month and rose 2.3% unadjusted year over year. This compares with a decrease of 0.2% month over month and an increase of 2.7% year over year in April.

May’s core retail sales as defined by NRF—excluding automobile dealers, gasoline stations, and restaurants—were up 0.3% seasonally adjusted month over month and up 2.9% unadjusted year over year. Core retail sales were up 3.5% year-over-year for the first five months of the year, aligning with NRF’s forecast for 2024 retail sales growth between 2.5% and 3.5% compared to 2023.

Last week, the CNBC/NRF Retail Monitor powered by Affinity Solutions reported that core retail sales increased by 1.2% seasonally adjusted month over month in May and rose by 2.88% year over year, compared with an increase of 0.4% month over month and a decrease of 0.05% year over year in April.

Unlike survey-based data collected by the Census Bureau, the Retail Monitor uses actual anonymized credit and debit card purchase data compiled by Affinity Solutions and does not require monthly or annual revisions.

As a leading authority in the retail industry, NRF provides monthly data on retail sales and forecasts annual spending for key periods such as the holiday season each year.

About NRF:

The National Retail Federation advocates for people, brands, policies, and ideas that support retail success from its headquarters in Washington D.C., empowering an industry crucial to the economy. As the largest private-sector employer in the nation, contributing $5.3 trillion annually to GDP and supporting more than one in four U.S jobs—55 million working Americans—NRF has been a voice for retailers for over a century.

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