After cutting back on spending during the long and unusually cold winter and early spring, Americans seemed to start spending when the weather turned nice in May.

According to Atlanta-based payment processor First Data, retail spending grew 1.7 percent in May compared to a 1.3 percent increase in April. Overall spending was up 4.2 percent in May, up from 4.1 percent the month before.

That’s good news for the American economy, 70 percent of which is made up consumer spending.

The big winner in First Data’s statistics: home and travel. Hotel spending grew 9.3 percent, a 12-month high, while gas stations saw growth of 3.6 percent. Building supplies spending grew 6.7 percent in May while Americans invested 1.4 percent more on home furnishings.

“A number of factors, including normalized weather, pent-up demand, falling unemployment and rising home prices supported consumers’ willingness to spend in May,” said Krish Mantripragada, senior vice president of information and analytics solutions for First Data.

About the Author

Keep Reading

Kandi Burruss, one of the longest-serving cast members in The Real Housewives franchise, opened Blaze Steak and Seafood in 2020. The restaurant is located along the Cascade Road corridor.

Credit: Savannah Sicurella

Featured

People join a rally in support for U.S. Centers for Disease Control and Prevention employees on Tuesday afternoon, April 1, 2025, at the Atlanta headquarters after federal cuts triggered significant layoffs. (Photo: Jenni Girtman for The Atlanta Journal-Constitution)

Credit: Jenni Girtman