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US retail sales fell by the most in two years in May following a burst in stockpiling during previous months as uncertainty over tariffs continues to distort consumer spending behaviour.
Sales of $715.4bn were down 0.9 per cent from April, figures released by the US Census Bureau on Tuesday showed. That was the biggest monthly drop since May 2023.
The data, which was also probably affected by rainy weather conditions, highlights the volatility in consumer purchasing habits caused by Donald Trump’s trade war. The US president has repeatedly threatened sweeping tariffs on trading partners, often before later pulling back.
“The weakness in retail sales in May was mostly due to temporary drags from the end of tariff front-running and the unseasonably wet weather in the east of the country, so should reverse in June,” said Bradley Saunders, North America economist at Capital Economics.
This is a developing story
