Consumer Behavior

Census data reveals retail sales growth continuing despite tariff proposals

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July 2, 2025

There was continued growth in core retail sales in May, according to U.S. Census Bureau data, despite a downturn in overall sales amid tariffs on imported merchandise.

"We're continuing to see growth for core retail sales this year at about the same pace as last year," National Retail Federation Chief Economist Jack Kleinhenz said in a press release citing the Census data.

"Despite a soft labor market, aggregate consumer spending has been supported by wage gains and an improvement in the stock market. 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."

The Census Bureau said overall retail sales in May were down 0.9% seasonally adjusted month over month but up 3.3% unadjusted year over year. That compared with a decrease of 0.1% month over month and an increase of 5% year over year in April.