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The
Commerce Department said on Thursday retail sales increased 1.2
percent last month after an upwardly revised 0.2 percent gain in
April.
Economists polled by Reuters had forecast retail sales advancing
1.1 percent last month. April sales were previously reported to
have been unchanged. March sales were also revised to show them
rising 1.5 percent instead of 1.1 percent.
Solid retail sales data added to robust job growth in May and
stabilizing manufacturing activity in suggesting the economy was
finding momentum after getting off to a slow start in the second
quarter. That likely keeps the Federal Reserve on track to raise
interest rates this year.
The government's most recent growth estimate showed gross
domestic product contracted at a 0.7 percent annual pace in the
first quarter, but data on healthcare spending on Wednesday,
together with revisions to construction spending, trade and
wholesale inventory reports suggested output probably shrank at
only a 0.1 percent rate.
Retail sales excluding automobiles, gasoline, building materials
and food services increased 0.7 percent last month after an
upwardly revised 0.1 percent rise in April.
The so-called core retail sales correspond most closely with the
consumer spending component of gross domestic product.
Economists had forecast core retail sales rising 0.5 percent in
May after they were previously reported to have been flat in
April.
Consumer spending is likely to remain fairly strong in the
coming months, supported by high savings, rising house prices
and a tightening labor market.
Overall retail sales last month were buoyed by a 2.0 percent
jump in receipts at auto dealerships. Sales at service stations
rose 3.7 percent, reflecting a rise in gasoline prices. Sales at
electronic and appliance stores gained 0.1 percent, while
receipts at furniture stores increased 0.8 percent.
Sales at clothing stores surged 1.5 percent. Receipts at online
stores climbed 1.4 percent and sales at sporting goods stores
increased 0.8 percent. Sales of building materials and garden
equipment advanced 2.1 percent.
Sales at restaurants and bars nudged up 0.1 percent.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)
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