US retail sales declined sharply in May, falling by the most in two years as consumer behavior was affected by trade policy uncertainty and temporary weather-related disruptions, the Financial Times reports.
According to data released Tuesday by the US Census Bureau, retail sales totaled $715.4 billion for the month, representing a 0.9% decrease from April. This marks the steepest monthly drop since May 2023.
Economists attribute the decline in part to consumers pulling back after a surge in spending earlier in the year, which some analysts describe as “stockpiling” prompted by trade-related concerns.
The decline comes amid heightened uncertainty surrounding US trade policy. President Donald Trump has repeatedly signaled the potential imposition of broad tariffs on key trading partners — often issuing threats and later reversing course. These policy signals have contributed to unpredictable shifts in consumer and business behavior.
“The weakness in retail sales in May was mostly due to temporary drags from the end of tariff front-running and the unseasonably wet weather in the east of the country, so should reverse in June,” said Bradley Saunders, North America economist at Capital Economics.
Unusually wet weather in the eastern US was also cited as a contributing factor to the slowdown in consumer spending. Weather-related disruptions may have deterred shoppers from visiting brick-and-mortar stores, further amplifying the monthly decline.
Despite the pullback in May, analysts suggest that the decline may be short-lived and expect sales to stabilize in June, barring further trade shocks or adverse economic indicators.
