U.S. Retail Sales Rise 0.3% in May, Exceeding Expectations

U.S. retail sales advanced 0.3% in May 2026, significantly surpassing economists' expectations for a 0.1% decline. The Commerce Department reported on June 17, 2026, that the unexpected increase suggests continued consumer resilience, potentially influencing Federal Reserve interest rate policy. Excluding volatile auto sales, retail purchases climbed 0.4% in May, also above the anticipated 0.2% rise. Core retail sales, which exclude autos, gasoline, building materials, and food services, increased 0.4% for the month. April 2026 retail sales were revised downward to a 0.2% decrease from an initial reading of flat growth. Key sectors contributing to May's strength included gasoline stations (+2.8%), non-store retailers (+0.8%), and food services (+0.8%), while furniture stores (-1.1%) and motor vehicle dealers (-0.8%) saw declines.