US retail sales jumped 0.9% in May, exceeding expectations, according to the Commerce Department’s Census Bureau. This increase follows a 0.4% gain in April. The rise in sales was partly due to higher gasoline prices, which lifted receipts at service stations.

Retail Sales Data

Retail sales, which are mostly goods and are not adjusted for inflation, rose 0.9% last month. Economists had forecast a 0.5% increase. The national retail average for gasoline prices has slipped below $4 a gallon for the first time since April.

The US and Iran agreed to end the war and reopen the Strait of Hormuz, which may impact oil prices and, in turn, retail sales. Tax refunds have also contributed to spending, with the saving rate dropping to a four-year low in April.

Retail sales excluding automobiles, gasoline, building materials, and food services increased 0.7% in May. This core retail sales data corresponds closely with the consumer spending component of gross domestic product.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.