U.S. retail sales increased 0.9% in May from April, according to advance estimates released Wednesday by the U.S. Census Bureau, as warmer weather and lower gas prices encouraged consumer spending.
The gain beat economists’ expectations and marked the third consecutive monthly increase.
Total sales for May reached $763.7 billion. Retail trade sales rose 1.0%, while sales at food services and drinking places increased 2.7% from a year earlier.
“Advance estimates of U.S. 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% (±0.4%) from the previous month, and up 6.9% (±0.5%) from May 2025,” the Census Bureau reported.
The March 2026 through May 2026 period showed sales up 5.3% from the same period a year ago. The March-to-April percent change was revised slightly downward from 0.5% to 0.4%.
Nonstore retailers posted strong gains, rising 12.2% from May 2025. Several categories contributed to the monthly increase, including gasoline stations (benefiting from lower prices), building materials, and general merchandise stores.
The data comes as markets monitor consumer strength during broader economic uncertainty, including the recent U.S.-Iran memorandum of understanding and its potential impact on energy prices, as previously reported by The Dallas Express. Lower gasoline prices have put more money back into consumers’ pockets, supporting spending at retail outlets.
Economists noted the report reflects resilient consumer demand despite higher interest rates earlier in the year. The figures are not adjusted for inflation.
The Census Bureau releases the advance monthly sales estimates based on a sample of retail and food services firms. Final figures are subject to revision in subsequent reports. This release follows other positive signals in consumer data, though analysts caution that sustained growth will depend on employment, wages, and energy costs in the coming months.
The full report is available on the U.S. Census Bureau website.
