Editor’s Note: This article has been updated with additional content.
U.S. consumers showed signs of strain in May, as a key spending gauge contracted for the second time this year, fueling concerns of a demand slowdown amid tariff-related trade uncertainty.
Headline retail sales slumped 0.9% month-over-month in May 2025, a sharp drop from April’s downwardly revised 0.1% decline, the U.S. Census Bureau reported Tuesday. The print came in worse than economists’ already grim forecasts for a 0.7% decline.
On a year-over-year basis, retail sales rose 3.3%, decelerating from April’s 5% annual growth.
Among the few bright spots in the report:
- Miscellaneous store retailers: +2.9% …