Retail sales jumped significantly in May with high increases month-over-month and year-over-year, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released today by the National Retail Federation.

“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. May’s year-over-year gains align with what we saw earlier this year, and the month-over-month increases are the largest in more than a year. We believe this underscores that April’s moderation was an outlier.”

Total retail sales, excluding autos and gas, were up 1.35 percent seasonally adjusted month-over-month and up 3.03 percent unadjusted year-over-year in May, according to the Retail Monitor. That compared with an increase of 0.26 percent month-over-month and a decrease of 0.6 percent year-over-year in April.

The Retail Monitor calculation of core retail sales, excluding restaurants in addition to autos and gas, was up 1.2 percent month-over-month in May and up 2.88 percent year-over-year. That compared with an increase of 0.4 percent month-over-month and a decrease of 0.05 percent year-over-year in April.

Total sales were up 2.13 percent year-over-year for the first five months of 2024, and core sales were up 2.48 percent. The month-over-month gains were the highest since April 2023, when total sales were up 1.13 percent, and core sales were up 1.27%.

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.

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. Sales were up in all but three categories on a monthly basis. Specifics from key sectors include: 

  • Online and other non-store sales were up 2.09 percent month-over-month, seasonally adjusted, and up 17.91 percent year-over-year unadjusted.
  • Health and personal care stores were up 1.29 percent month-over-month seasonally adjusted and up 6.86 percent year-over-year unadjusted.
  • Clothing and accessories stores were up 1.44 percent month-over-month seasonally adjusted and up 6.24 percent year-over-year unadjusted.
  • General merchandise stores were up 1.31 percent month-over-month seasonally adjusted and up 4.89 percent year-over-year unadjusted.
  • Grocery and beverage stores were up 1.97 percent month-over-month seasonally adjusted and up 2.53 percent year-over-year unadjusted.
  • Building and garden supply stores were down 0.6 percent month-over-month seasonally adjusted and down 0.53 percent year-over-year unadjusted.
  • Sporting goods, hobby, music, and bookstores were up 1.04 percent month-over-month seasonally adjusted but down 0.71 percent year-over-year unadjusted.
  • Electronics and appliance stores were down 0.05 percent month-over-month seasonally adjusted and down 0.87 percent year-over-year unadjusted.
  • Furniture and home furnishings stores were down 0.14 percent month-over-month seasonally adjusted and down 3.21 percent year-over-year unadjusted.

Image courtesy Shops at Buckhead