Retail

May retail sales surge in US amid economic challenges: NRF

19 Jun '23

2 min read

Pic: Sorbis / Shutterstock.com

Insights

Despite economic challenges, US retail sales increased in May, according to NRF.
Online sales saw a rise, but clothing stores remained flat.
NRF attributes continued spending to improvements in jobs and wages, while also acknowledging the impact of inflation on consumer income.
The US Census Bureau reported a 0.3 per cent retail sales rise from April.

Retail sales rose again in May as consumers continued to spend despite economic challenges, the National Retail Federation (NRF) said.

Clothing and clothing accessory stores were unchanged month over month seasonally adjusted but down 0.2 per cent unadjusted year over year. As for online and other non-store sales, they were up 0.3 per cent month over month seasonally adjusted and up 8.7 per cent unadjusted year over year.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed May was up 0.4 per cent from April and up 4.4 per cent unadjusted year over year. In April, sales were up 0.6 per cent month over month and up 1.4 per cent year over year. NRF’s numbers were up 3 per cent unadjusted year over year on a three-month moving average as of May. Sales were up 4.2 per cent year over year for the first five months of the year.

“Consumers continued to spend on household priorities in May, supported by gains in the job market and wages,” NRF president and CEO Matthew Shay said in a press release. “Retailers recognise the ongoing pressure on cost-sensitive consumers and are offering competitive pricing, a wide product mix and convenient shopping options to help stretch family budgets.”

“This was a positive report with no sign of an abruptly slowing economy despite what has happened with inflation and interest rate pressures,” NRF chief economist Jack Kleinhenz said. “Even though shoppers dialled back in some categories on a year-over-year basis, these numbers confirm that consumers still have the capacity to spend. Job growth and wages are providing buoyancy, although inflation continues to take a bite out of consumer income. May is typically a strong month for retail as spring shopping hits its peak, but above-average temperatures and below-average precipitation no doubt played a favourable role.”

The US Census Bureau said overall retail sales in May were up 0.3 per cent from April and up 1.6 per cent year over year. In April, sales were up 0.4 per cent month over month and up 1.2 per cent year over year.

Fibre2Fashion News Desk (KD)

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