Data released today by the U.S. Census Bureau showed retail sales growth in May despite a downturn in overall sales amid fluctuating tariffs on imported merchandise, according to the National Retail Federation (NRF).

May retail sales in the building and garden supplies sector were down 2.7% from April 2025 in the most recent report from the U.S. Census Bureau and down 1.1% unadjusted year over year. Overall retail sales were up slightly, at a 3.3% increase year over year.

“We’re continuing to see growth for core retail sales this year at about the same pace as last year,” says Jack Kleinhenz, NRF chief economist. “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.”