CNBC/NRF Retail Monitor shows sales grew again in May

Retail sales rose for the eighth consecutive month in May despite high gas prices and ongoing inflation, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released by the National Retail Federation.

“Retail sales maintained momentum in May, driven by a resilient labor market and consumers’ continued willingness to spend on retail goods despite pressure from elevated gas prices, tariffs and the conflict in the Middle East,” NRF President and CEO Matthew Shay said. “As support from this year’s large tax refunds fades, consumers are prioritizing essentials and finding creative ways to stretch their household budgets. To support them, retailers are actively engaging their supply chains and supplier networks to keep prices affordable."

Total retail sales, excluding automobile dealers and gasoline stations, were up 0.42% seasonally adjusted month over month and up 7.19% unadjusted year over year in May, according to the Retail Monitor. That compared with increases of 0.34% month over month and 5.73% year over year in April.

The Retail Monitor calculation of core retail sales (excluding restaurants in addition to auto dealers and gas stations) was up 0.39% month over month in May and was up 6.98% year over year. That compared with increases of 0.34% month over month and 5.53% year over year in April.

Total sales were up 6.29% year over year during the first five months of the year, and core sales were up 6.19%.

Unlike survey-based numbers collected by the Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.

April sales were up in all but one of nine categories on a yearly basis, led by electronics and appliance stores, clothing stores and health and personal care stores, and were up in all but two categories on a monthly basis. Specifics from key sectors include:

• Electronics and appliance stores were up 0.05% month over month seasonally adjusted and up 11.59% year over year unadjusted.
• Clothing and accessories stores were up 0.6% month over month seasonally adjusted and up 10.25% year over year unadjusted.
• Health and personal care stores were up 0.45% month over month seasonally adjusted and up 8.87% year over year unadjusted.
• Sporting goods, hobby, music and book stores were up 0.25% month over month seasonally adjusted and up 8.59% year over year unadjusted.
• General merchandise stores were up 0.41% month over month seasonally adjusted and up 8.28% year over year unadjusted.
• Digital products (such as electronic books and games) were up 1.22% month over month seasonally adjusted and up 7.79% year over year unadjusted.
• Grocery and beverage stores were up 0.48% month over month seasonally adjusted and up 6.01% year over year unadjusted.
• Furniture and home furnishings stores were down 0.09% month over month seasonally adjusted but up 3.35% year over year unadjusted.
• Building and garden supply stores were down 0.38% month over month seasonally adjusted and down 1.88% year over year unadjusted.