According to the Commerce Department, US retail sales decreased by 0.9% in May, following a 0.1% decline in April. This reduction was largely due to a significant drop in auto sales, which had surged in March as consumers sought to avoid President Trump's 25% tariff on imported vehicles and parts. Despite a decrease in consumer confidence, consistent inflation and low unemployment may sustain moderate spending levels in the coming months. Sales, excluding sectors like gas, cars, and restaurants, rose by 0.4% last month, indicating that consumers are still purchasing some non-essential items. While many categories experienced sharp declines, online retailers, clothing stores, and furniture stores saw an increase in sales. The overall decline in retail sales is likely connected to concerns about higher prices resulting from Trump's tariffs.