Sales tax revenue in New York continued its third straight month of relatively sluggish growth, a departure from the stimulus-induced rise in consumer spending and as inflation has cooled somewhat over the last several weeks. 

Comptroller Tom DiNapoli's office on Friday reported sales tax revenue grew by 1.1% in May compared to the previous year. It's an increase that's in keeping with March and April results that showed revenue rising less than 2% compared to last year. 

It's a potential problem for local governments in New York that rely in large part on their sales tax revenue. 

“Modest growth in local sales tax collections could be challenging for local officials trying to maintain fiscal balance,” DiNapoli said. “Being prepared for a slowdown is especially important in this uncertain economy.”

The leveling off in sales tax growth also comes as more New Yorkers are back to work three years since a sharp increase in joblessness due to the COVID pandemic. The state Department of Labor reported this week the unemployment rate in New York fell below 4% for the first time since early 2020. 

Overall, sales tax collections reached $1.7 billion in May, an increase from $18.4 million the same time a year ago. 

New York City's sales tax collections were higher than the rest of the state overall, reaching a 3.3% increase. Franklin County saw the largest decline in growth at 11.4%; Rockland County had the highest increase at 7.2%. 

Forty-seven out of 57 counties that report sales tax revenue had a year-over-year drop in money collected.