The American consumer, missing in action for much of 2015, showed up in May.
Retail sales increased 1.2 per cent last month, matching the median forecast of economists surveyed by Bloomberg and following a 0.2 per cent advance in April, Commerce Department figures showed Thursday in Washington. The gain was broad-based with 11 of 13 major categories gaining.
The data shows American consumers are ready to spend on more than just automobiles, unlocking months of savings from cheap gasoline and higher incomes as the labour market improves. A pick-up in purchases - accompanied by faster wage gains - would burnish the outlook for growth this year.
Estimates in the Bloomberg survey of 85 economists ranged from gains of 0.4 per cent to 1.9 per cent. April retail sales were previously reported as little changed. March data were revised up to show an increase of 1.5 per cent from a previously reported 1.1 per cent advance.
Other reports Thursday showed claims for jobless benefits remained below 300,000 for the 14th straight week, and the cost of imported goods rose in May for the first time in almost a year as fuel prices rebounded.
Sales at auto dealers, clothing and building material stores were among the biggest gainers last month, according to the Commerce Department's report.
Sales climbed 2 per cent at automobile dealers last month, after rising 0.7 per cent in April.
Industry data from Ward's Automotive Group issued earlier this month showed cars and light trucks sold at a 17.7 million annualised rate in May, the strongest pace since July 2005.
Memorial Day promotions drew Americans to dealerships, while an improved job market also had consumers heading to showrooms and paying higher prices by taking out longer loans.
General Motors Co and Fiat Chrysler reported bigger sales increases than analysts had anticipated.
Retail sales excluding autos increased 1 per cent, the Commerce Department report showed. They were projected to rise 0.8 per cent, according to the Bloomberg survey median. It followed a 0.1 per cent gain in April.
The figures used to calculate gross domestic product, which exclude categories such as food services, auto dealers, home-improvement stores and service stations, increased 0.7 per cent in May after rising 0.1 per cent the month before. The reading for March was revised up to show a 0.9 per cent gain compared with a previously reported 0.5 per cent advance, which should boost first-quarter consumer spending when the figures are updated later this month.
Retail sales increased 1.2 per cent last month, matching the median forecast of economists surveyed by Bloomberg and following a 0.2 per cent advance in April, Commerce Department figures showed Thursday in Washington. The gain was broad-based with 11 of 13 major categories gaining.
The data shows American consumers are ready to spend on more than just automobiles, unlocking months of savings from cheap gasoline and higher incomes as the labour market improves. A pick-up in purchases - accompanied by faster wage gains - would burnish the outlook for growth this year.
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"The consumer took a month off and came back and spent in style," said Ward McCarthy, chief financial economist at Jefferies LLC in New York, who correctly forecast the increase in retail sales. "Consumers' behaviour has been inconsistent, but the trend has been for gradual acceleration of spending."
Estimates in the Bloomberg survey of 85 economists ranged from gains of 0.4 per cent to 1.9 per cent. April retail sales were previously reported as little changed. March data were revised up to show an increase of 1.5 per cent from a previously reported 1.1 per cent advance.
Other reports Thursday showed claims for jobless benefits remained below 300,000 for the 14th straight week, and the cost of imported goods rose in May for the first time in almost a year as fuel prices rebounded.
Sales at auto dealers, clothing and building material stores were among the biggest gainers last month, according to the Commerce Department's report.
Sales climbed 2 per cent at automobile dealers last month, after rising 0.7 per cent in April.
Industry data from Ward's Automotive Group issued earlier this month showed cars and light trucks sold at a 17.7 million annualised rate in May, the strongest pace since July 2005.
Memorial Day promotions drew Americans to dealerships, while an improved job market also had consumers heading to showrooms and paying higher prices by taking out longer loans.
General Motors Co and Fiat Chrysler reported bigger sales increases than analysts had anticipated.
Retail sales excluding autos increased 1 per cent, the Commerce Department report showed. They were projected to rise 0.8 per cent, according to the Bloomberg survey median. It followed a 0.1 per cent gain in April.
The figures used to calculate gross domestic product, which exclude categories such as food services, auto dealers, home-improvement stores and service stations, increased 0.7 per cent in May after rising 0.1 per cent the month before. The reading for March was revised up to show a 0.9 per cent gain compared with a previously reported 0.5 per cent advance, which should boost first-quarter consumer spending when the figures are updated later this month.