US retail sales rose 0.9% month-on-month in May, surpassing market estimates and indicating resilient consumer spending. The actual figure topped the consensus estimate of 0.5% and marked an acceleration from the revised 0.4% growth registered in April. On a year-on-year basis, retail sales grew 6.90%, compared to the prior reading of 4.87%. Additionally, the Retail Control group, which excludes food services, automobiles, building materials, and gasoline, rose 0.8%, exceeding the 0.6% estimate and the prior 0.5% reading.

Key Data at a Glance

The following table summarises the May retail sales data against prior and estimated figures:

Performance Against Expectations

The May retail sales figure of 0.9% exceeded the market estimate of 0.5%, while also outpacing the previous month's reading of 0.4%. The Retail Control group's performance of 0.8% also surpassed expectations of 0.6%, indicating a pickup in month-on-month consumer spending momentum compared to the prior period. The year-on-year growth of 6.90% further highlights the strength in consumer spending relative to the prior year's 4.87% increase.

Pending home sales in the United States rose 3.8% month-over-month and 4.8% year-over-year in May 2026, according to the National Association of REALTORS Pending Home Sales report. The increase reflects a late spring buyer rush despite mortgage rates remaining above 6%, indicating pent-up housing demand and consumer acceptance of current borrowing costs. The data, which tracks signed contracts for existing home sales, provides a forward-looking indicator for the housing sector.

All four major regions reported growth in both monthly and annual contract signings. The inventory-constrained Northeast region led the gains with an 8.7% monthly increase and a 6.1% annual rise. The Midwest followed with an 8.1% monthly jump and a 9.3% annual increase. The South and West saw more modest growth, with the South rising 1.0% monthly and 3.3% annually, and the West increasing 0.7% monthly and 1.2% annually.

Regional Performance

The Northeast and Midwest showed the strongest recovery in buyer activity. The Northeast, which had previously experienced faster home price growth but slower sales, demonstrated a resurgence in contract signings. The Midwest posted the highest year-over-year growth among the four regions at 9.3%.

Top Metro Markets

Among the 50 largest metropolitan areas, Kansas City, MO-KS, recorded the most significant year-over-year increase in pending home sales at 20.1%. San Antonio-New Braunfels, TX, and Minneapolis-St. Paul-Bloomington, MN-WI, followed with gains of 15.7% and 13.9%, respectively. Miami-Fort Lauderdale-West Palm Beach, FL, and Louisville/Jefferson County, KY-IN, also posted double-digit annual increases.

NAR Chief Economist Dr. Lawrence Yun attributed the activity to pent-up demand and suggested that falling oil prices could modestly lower mortgage rates in the future. However, he noted that significant government borrowing and strong AI investment spending by tech companies may limit the extent of rate declines. Yun emphasized that increased supply is necessary to help moderate home price growth.