Commerce Department Shows U.S. Retail Sales Up in May

Washington, D.C. Total U.S. retail sales in May surged a stronger-than-expected 1.0% as Americans, many with economic stimulus payments in hand, splurged more on gasoline and goods, a government report showed Thursday.

The Commerce Department reported an increase last month that was twice as much as expected by Wall Street economists polled before the report. Taking out autos, building materials and gasoline, sales rose a steady 0.8% during the month, according to Reuters.

The retail sales report showed that general merchandise stores, which include department stores and discount stores such as Wal-Mart, saw sales rise by 1.2%, the best showing since a 2.1% rise in March 2007.

The report's headline and core readings were stronger than expected. Most economists had predicted that retail sales rose 0.6% and that core sales increased 0.7% last month. The gain in overall sales was the strongest since November.

The government revised its readings for April retail sales to reflect a stronger picture, saying sales had risen 0.4% compared with an initial estimate that they had declined 0.2%.