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5h ago

U.S. Retail Sales Rise 0.9% in May Driven Largely by Higher Gasoline Prices

Price gains at the pump lifted the nominal reading even as inflation-adjusted retail volumes fell and markets turn their attention to the Federal Reserve's Warsh event.

FILE - A customer prepares to pump diesel fuel at this Madison, Miss., Sam's Club, Tuesday, May 24, 2022. (AP Photo/Rogelio V. Solis, File)
FILE - A employee works at a cash register in a grocery store in Schaumburg, Ill., Thursday, May 14, 2026. (AP Photo/Nam Y. Huh, File)
US retail sales jumped more than analysts expected in May, despite steeper gasoline costs weighing on households
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Overview

  • U.S. retail receipts rose 0.9% in May, topping forecasts and matching card-based nowcasts that had predicted a stronger month.
  • The commonly watched control group, which excludes autos, gasoline and building materials, increased 0.7%, signaling underlying demand outside energy and housing-related categories.
  • A large share of the headline gain reflected fuel costs: gasoline station sales were up 26.5% year-over-year, which boosted nominal receipts but does not indicate higher real volumes.
  • When adjusted for inflation, analysts report real retail sales fell roughly 0.2% month-to-month, and restaurants and housing-related goods showed weakness in the sector breakdown.
  • Earlier Middle East oil disruptions then eased by a tentative diplomatic deal have started to lower pump prices and could materially change June consumption and inflation readings while short-term market focus stays on the Fed's Warsh-led policy event.