Data released by the U.S. Census Bureau showed continued growth in core retail sales in May, even as overall retail sales declined, the National Retail Federation (NRF) reports. According to the Census Bureau, total retail sales fell 0.9% seasonally adjusted month over month in May but rose 3.3% unadjusted year over year. In comparison, April saw a 0.1% month-over-month decrease and a 5% year-over-year increase.

Core retail sales—which exclude auto dealers, gas stations, and restaurants—were up 0.1% seasonally adjusted month over month in May and 3.9% unadjusted year over year. On a three-month moving average, core sales rose 4.4% year over year, and increased 3.9% for the first five months of 2025.

Compared to the latest data from the CNBC/NRF Retail Monitor, released by NRF, core retail sales rose 0.23% month over month and 4.2% year over year in May, following increases of 0.9% and 7.11% respectively in April.

“Despite a soft labor market, aggregate consumer spending has been supported by wage gains and an improvement in the stock market,” says NRF chief economist Jack Kleinhenz. “Consumers are seeing their way through the uncertainty with trade policies, but I expect the inflation associated with tariffs to be felt later this year. Consumers remain very price sensitive, and those costs are likely to weigh heavily on consumer budgets.”