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Americans are still spending their tax refunds — for now, as retail sales jump in May

8 0
17.06.2026

Americans are still spending their tax refunds — for now, as retail sales jump in May

Shoppers stepped up their spending in May and surpassed expectations as temperatures warmed and gasoline prices cooled.

Retail sales rose 0.9%, up from a revised 0.4% gain in April, according to new 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%.

Spending was broad-based. Business at clothing, accessory and furniture stores all posted increases. Online sales rose 1.5%.

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

The data released Wednesday offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. The lone services category – restaurants – registered a 0.1% decline.

But the so-called control group—which excludes food services,........

© Fortune