The engine of this economy — consumers — slowed in May. Consumer spending is responsible for more than two-thirds of gross domestic product in the U.S.

Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump’s sweeping tariffs on nearly all imports.

US retail sales fell by the most in two years in May following a burst in stockpiling during previous months as uncertainty over tariffs continues to distort consumer spending behaviour. Sales of $715.4bn were down 0.9 per cent from April, figures released by the US Census Bureau on Tuesday showed. That was the biggest monthly drop since May 2023.