American consumers kept spending in May, even as gas prices climbed to levels that would make most people wince at the pump. Retail sales rose 0.9% month-over-month to $763.7 billion, a figure that comfortably beat expectations and painted a picture of surprising economic resilience.
The data, released on June 17, also showed a 6.9% year-over-year increase compared to May 2025.
Gasoline did the heavy lifting, but not all of it
Here’s the thing about retail sales data: it doesn’t adjust for price changes. When gasoline costs more, gas station “sales” go up even if people are buying the same amount of fuel. Average regular motor gasoline prices surged 9.2% from April to May, hitting $4.48 per gallon. That spike is largely tied to geopolitical tensions in the Middle East, particularly escalating actions involving the US and Israel against Iran that have pressured global energy markets.
But gasoline stations weren’t the only category pulling the numbers higher. Other retail segments contributed to the broad-based increase, suggesting that even after stripping out the gas station effect, consumers were still willing to open their wallets.
