The Commerce Department said on Tuesday U.S. retail sales rose more than expected (o.5%) in May an unrevised 1.3% gain in the month of April, topping views.
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The weakest performing sectors in April were telecoms apparatus and computers, where sales nosedived 17.1 per cent, and watches and jewellery, which were down 11.3 per cent. Receipts at service stations increased 2.1%, reflecting recent increases in gasoline prices.
Sales rose 1.3% at sporting goods stores, 0.8% at restaurants and bars, 0.3% at electronics and appliance stores, 0.6% at health and personal care stores, 0.8% at clothing stores and 1.3% online. Economists polled by Reuters had forecast both overall retail and core sales gaining 0.3% last month.
Retail sales excluding motor vehicles, rose 0.4% from the prior month. The second straight month of gains boosted sales 2.5 percent from a year ago.
Retail sales: previous 1.3%, expected 0.3%, actual: +0.5%.
Americans were out spending a bit more of their money in stores in May. During the same period, sales of watches and jewellery also fell, declining by 11.3 percent. Retail sales are calculated based on final sale prices and don’t account for price fluctuations.
Estimates in the Bloomberg survey ranged from gains of 0.1 percent to 0.7 percent.
“Consumer spending continued to expand at a solid pace in the spring, driving the economy forward”, he said. As a result, GDP expanded only 0.8 percent in January, February and March.
Apparel store sales rose 0.8% vs. April, but were still down 0.5% vs. a year earlier.
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Sales declines hit building material stores, furnishers and department stores last month. But with the dollar weakening 1.5% against the currencies of the United States’ main trading partners this year and oil prices near US$50 per barrel, that drag is starting to lift. These gains were offset by backsliding sales in furniture and furnishings, building materials and general merchandise stores.
