American consumers did not get the memo about economic uncertainty. Retail sales jumped 0.9% in May, according to the Census Bureau’s Advance Monthly Retail Trade report released June 17, nearly doubling the 0.5% gain that economists had penciled in.
The prior month’s figure was also revised downward to 0.4%, making May’s acceleration look even more pronounced. Year-over-year, retail sales climbed 6.9%.
Where the money went
The gains were broad-based, but a few categories did the heavy lifting. Gasoline stations led the charge with a 3.4% monthly increase, a figure heavily influenced by rising fuel prices tied to the ongoing conflict with Iran. That’s worth noting: higher gas station receipts don’t necessarily mean people are buying more gas. They might just be paying more for it.
Miscellaneous store retailers posted a 2.3% gain. Nonstore retailers, the category that captures e-commerce, rose 1.5%. The automobile sector added 1.2%.
