US retail and food services sales increased in May 2026, reflecting continued strength in consumer spending and exceeding market expectations, according to advance estimates released by the US Census Bureau.
The Census Bureau reported that advance estimates of retail and food services sales, adjusted for seasonal variation and holiday and trading-day differences but not for price changes, reached $763.7 billion in May.
The figure represented a 0.9% increase from the previous month and a 6.9% rise compared with May 2025.
The latest reading came in above market expectations of a 0.5% monthly increase.
On an annual basis, retail sales also posted solid growth, underscoring the resilience of consumer demand.
Sales growth extends annual gains
According to the Census Bureau, total sales for the March 2026 through May 2026 period increased 5.3% compared with the same period a year earlier.
The agency also revised its estimate for the March-to-April period.
The Census Bureau stated in its release: “Advance estimates of US retail and food services sales for May 2026, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $763.7 billion, up 0.9% from the previous month, and up 6.9% from May 2025.”
Retail trade sales show strong momentum
Retail trade sales outpaced the broader headline figure, posting a 1.0% increase from April and a 7.5% rise compared with the same period last year.
The Census Bureau said, “Retail trade sales were up 1.0% from April 2026, and up 7.5% from last year. Nonstore retailers were up 12.2% from last year, while food services and drinking places were up 2.7% from May 2025.”
The data highlighted particularly strong performance among nonstore retailers, which recorded double-digit annual growth. Food services and drinking places also posted year-over-year gains.
Consumer spending remains resilient
The latest retail sales figures suggest that consumer spending, a key driver of economic activity, remained robust during May.
The 0.9% monthly increase exceeded both analysts’ expectations and the revised 0.4% increase recorded in the previous month.
The latest reading represents more than double the pace of growth seen in April, indicating an acceleration in retail activity.
The stronger-than-expected performance points to continued consumer purchasing power and a healthier spending environment than many analysts had anticipated.
The dollar’s advance came amid broader caution across global markets ahead of the Federal Open Market Committee event scheduled later in the day.
Market participants often view retail sales data as an important gauge of consumer behaviour and overall economic health.
Stronger retail activity can influence expectations surrounding economic growth, inflation trends, and future monetary policy decisions.
Overall, the May retail sales report presented a positive picture of the US economy.
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