Retail Sales up 0.9% in May as the weather improved and gasoline prices cooled

Shoppers increased their spending in May as temperatures warmed and gasoline prices cooled.

Retail sales rose a better-than-expected 0.9%, up from a revised 0.4% gain in April, according to new Commerce Department data released Wednesday. Sales got a boost from generous government tax refunds in both April and May, though economists say that cushion is starting to fade.

Excluding sales at gas stations, retail sales in May rose 0.7%.

Sales at at clothing and accessories stores rose 0.3%, while business at home furnishing and furniture stores rose 1%. Online sales rose 1.5%.

The data released Wednesday offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. The lone services category – restaurants – registered a 0.1% decline.

Consumers are the engine of the American economy, driving most of the nation’s economic growth. Their spending has remained resilient so far this year despite rising prices and lackluster hiring.

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