U.S. Retail Sales Climb 0.3% in May, Exceeding Forecasts

U.S. retail sales rose 0.3% in May 2026, surpassing economists' expectations and suggesting resilient consumer spending despite high interest rates. This follows a revised 0.2% decline in April 2026, indicating stronger underlying demand than initially reported. The unexpected growth could influence the Federal Reserve's monetary policy outlook. Economists polled by Reuters had forecast a 0.2% increase for May. Core retail sales, which exclude volatile categories like autos and gasoline and are used in GDP calculations, advanced 0.4% last month. Total retail sales increased 2.3% year-on-year. The robust retail performance may delay anticipated interest rate cuts by the Federal Reserve, which last week maintained its policy rate between 5.25% and 5.50% and projected only one rate cut for 2026. Sales were mixed, with online and clothing stores seeing gains, while gasoline stations and building material stores experienced declines.