• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Current price of oil as of June 16, 2026

2

'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream

3

Cursor’s 25-year-old CEO is a former Google intern who just cemented a $60 billion deal with SpaceX

1

Current price of oil as of June 16, 2026

2

'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream

3

Cursor’s 25-year-old CEO is a former Google intern who just cemented a $60 billion deal with SpaceX
EconomyConsumer Spending

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

By
Anne D'Innocenzio
Anne D'Innocenzio
and
The Associated Press
The Associated Press
Down Arrow Button Icon
By
Anne D'Innocenzio
Anne D'Innocenzio
and
The Associated Press
The Associated Press
Down Arrow Button Icon
June 17, 2026, 10:10 AM ET
retail
A employee works at a cash register in a grocery store in Schaumburg, Ill., Thursday, May 14, 2026. AP Photo/Nam Y. Huh, File
Add Fortune on Google for similar content.

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

Recommended Video

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, autos, building materials and gas station sales and is used to calculate economic growth—rose 0.7%. That suggests solid spending, economists said.

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.”

Rising gas prices pushed inflation to its highest level in three years, U.S. data showed last week, with consumer prices rising 4.2% in May, compared with last year. On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.

There is a tentative deal to end the Iran war and reopen the Strait of Hormuz, but even after oil starts flowing again from the Middle East it could take awhile for the supply crunch to ease.

Gas prices fell about a penny overnight to $4.02, down 11% from a month ago, according to motor club AAA. The national average for a gallon of gasoline has not been below $4 since March, according to AAA.

“While the deal is encouraging, our industry is still holding its breath,” said Steve Lamar, the CEO of trade group American Apparel & Footwear Association. ”Our question now is, will this agreement be strong enough for our global industry to begin recovering?”

Lamar noted that unplanned costs continue to squeeze profit margins, with companies facing higher expenses for ocean freight, air cargo and packaging. He said that even under the best-case scenario, it will take time to stabilize.

The spike in gas prices this year due to the Iran war may alter some behavior, peace deal or not.

Even as gas prices continue to retreat, analysts say some shoppers will stick to habits they picked up as prices soared, like filling up the car at big box stores where they can get discounts.

Visits to gas stations operated by big box chains like BJ’s, Costco and Sam’s Club, which offer discounts to members, began to accelerate in early March, aligning with a sharp rise in fuel prices, said R.J. Hottovy, the head of analytical research at Placer.ai, which tracks people’s movements based on cellphone usage.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Authors
By Anne D'Innocenzio
See full bioRight Arrow Button Icon
By The Associated Press
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Economy

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Economy

retail
EconomyConsumer Spending
Americans are still spending their tax refunds — for now, as retail sales jump in May
By Anne D'Innocenzio and The Associated PressJune 17, 2026
2 hours ago
carney
EconomyG7
‘I wouldn’t see it as a snub’: Canada insists there’s nothing behind the lack of a Trump-Carney meeting
By Rob Gillies and The Associated PressJune 17, 2026
2 hours ago
warsh
EconomyFederal Reserve
Kevin Warsh spent a year calling for rate cuts. Now he’ll have to explain why he can’t
By The Associated Press and Christopher RugaberJune 17, 2026
2 hours ago
Exclusive: Universal beat Disney as Hollywood’s maker of the most expensive movie of all time 
Arts & EntertainmentNBC Universal
Exclusive: Universal beat Disney as Hollywood’s maker of the most expensive movie of all time 
By Christian SyltJune 17, 2026
5 hours ago
The art of the bail: Iran got what it wanted. Did the U.S.? Everyone is judging Trump’s MIA MOU
Middle EastMarkets
The art of the bail: Iran got what it wanted. Did the U.S.? Everyone is judging Trump’s MIA MOU
By Jim EdwardsJune 17, 2026
6 hours ago
op
EconomyWealth
Your raise used to go offshore. Then it went to a buyback. Now it’s going to a data center
By Nick LichtenbergJune 17, 2026
7 hours ago

Most Popular

Current price of oil as of June 16, 2026
Personal Finance
Current price of oil as of June 16, 2026
By Joseph HostetlerJune 16, 2026
1 day ago
'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream
Success
'Work hard, stay loyal, and the system will reward you': the Boomer credo is a Gen X betrayal and a Millennial pipe dream
By Nick LichtenbergJune 16, 2026
1 day ago
Cursor’s 25-year-old CEO is a former Google intern who just cemented a $60 billion deal with SpaceX
AI
Cursor’s 25-year-old CEO is a former Google intern who just cemented a $60 billion deal with SpaceX
By Marco Quiroz-GutierrezJune 16, 2026
1 day ago
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
Big Tech
Hundreds of Stanford students walked out of their grad ceremony to protest Google CEO’s commencement speech. It wasn’t all about AI
By Tristan BoveJune 15, 2026
2 days ago
Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup
Success
Team USA star Ricardo Pepi grew up in a trailer in El Paso—and his parents pawned their car title to fuel his soccer dream. Now, he’s in the World Cup
By Preston ForeJune 15, 2026
2 days ago
Current price of silver as of Tuesday, June 16, 2026
Personal Finance
Current price of silver as of Tuesday, June 16, 2026
By Joseph HostetlerJune 16, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.