Retail sales in the US increased by much more than expected in May, according to a report released by the Commerce Department on Wednesday.
The Commerce Department said retail sales grew by 0.9% in May after rising by a downwardly revised 0.4% in April.
Economists had expected retail sales to climb by 0.5%, matching the increase originally reported for the previous month.
"The stronger-than-expected rise in retail sales is consistent with real consumer spending growth just north of 2% annualized in Q2, better than our baseline forecast," said Michael Pearce, chief US economist at Oxford Economics.
He added, "We still think higher refunds supported spending in May and that higher gasoline prices will put some pressure on spending over the coming months, but overall, the consumer remains resilient."
The report showed a notable rebound in sales by motor vehicle and parts dealers, which shot up by 1.2% in May after sliding by 0.9% in April.
Excluding the jump in sales by motor vehicle and parts dealers, retail sales still advanced by 0.8% in May after climbing by 0.7% in April. Ex-auto sales were expected to rise by 0.5%.
Sales by gas stations helped lead the way higher, spiking by 3.4% in May after surging by 2.4% in April amid higher gasoline prices.
The report also showed significant growth in sales by miscellaneous store retailers, non-store retailers and furniture and home furnishings stores.
Core retail sales, which exclude automobiles, gasoline, building materials and food services, increased by 0.7% in May after rising by 0.5% in April.
