Retail sales in the US rose in May on the back of robust consumer spending, which in turn, was supported by steady employment and wage gains, said the National Retail Federation.

Total retail sales, excluding automobiles and gasoline, rose 3.03 per cent year over year and 1.35 per cent month over month in May. Clothing and accessories stores, which include jewellery shops, were up 6.24 per cent year over year and 1.44 per cent month over month.

“Consumers have clearly retained their ability to spend and are driving solid economic growth,” NRF President and CEO Matthew Shay said. “Spending is being supported by the job market and real wage gains. Inflation remains stubborn but is almost entirely in services rather than retail goods.”

Year-on-year gains in May are in line with trends seen in early 2024 while the month-on-month increases are the largest in more than a year, added Shay. US retail sales slowed in April on account of more cautious spending and inflation woes.  

May sales were up in five out of nine retail categories on a yearly basis, led by online sales, health and personal care stores, and clothing and accessory stores, noted NRF.