News of the Day June 19, 2026
United States Retail Sales Up a Strong 0.9% in May

Retail sales rose 0.9%, up from a revised 0.4% gain in April, according to Commerce Department data released Wednesday. Sales got a boost from generous government tax refunds in both April and May, though economists say that cash cushion is starting to fade.

Excluding sales at gas stations, retail sales in May rose 0.7%.

The figures aren’t inflation-adjusted so higher prices likely helped boost sales. But economists point to healthy spending with increases that were broad-based. Business at clothing, accessory and furniture stores all posted sales gains. Online sales rose 1.5%.

There were a few weak spots. Electronics and appliance stores and department stores both registered slight sales declines.

Consumers are the engine of the American economy, driving most of the nation’s economic growth. And the latest retail sales report underscores that spending has remained resilient so far this year despite rising prices. Solid increases in hiring have also buoyed spending, economists said.

“The stronger-than-forecast and broad-based gains in May retail sales show that consumers continued to spend strongly despite higher gasoline prices in the month,” Nationwide Chief Economist Kathy Bostjancic writes. “The large tax refunds and overall tax reductions for households this year and the recent strengthening in employment growth helped buffer the negative drag from higher gasoline prices.”