Nonseasonally-adjusted May retail sales increased 5.6 percent year-over-year and seasonally adjusted sales increased 0.7 percent over April, the National Retail Federation announced.
“The economy is looking strong and households have a solid financial foundation on which to base their spending,” said NRF Chief Economist Jack Kleinhenz.
He noted increased take-home pay due in part to tax cuts, low unemployment, and high availability of consumer credit as factors.
“We have seen ongoing momentum over the last several months and believe sales growth should remain health and consistent with our 2018 outlook,” he said. “Nonetheless, inflation and rising oil prices are complicating the picture. And new tariffs or a trade war would certainly be negatives that would increase prices and reduce both consumer purchasing power and consumer confidence.”