WASHINGTON—Total retail sales rose 0.8% in May – the largest monthly gain since November 2017.
NAFCU Research Assistant Yun Cohen said the gains were "broad-based" as consumer spending has strengthened in recent months.
Cohen added, in a NAFCU Macro Data Flash report, that stronger consumer spending "supported by a strong labor market, stimulative tax cuts and higher inflation" should bode well for economic growth. "However, rising interest rates could affect sales of big-ticket items. Uncertainties about political and trade policies pose additional downside risks," she said.
According to data published by the Census Bureau, April's sales growth was revised up from 0.3% to 0.4%, while March's growth was revised down from 0.8% to 0.7%.
Core retail sales (excluding light vehicles and gasoline) increased 0.8% in May; auto and gas sales improved 1% during the month, Cohen said.
"Rising gasoline prices drove up sales at the pump, but did not appear to weigh down spending on other goods," Cohen said.
Results among the major retail segments were mostly positive in May, Cohen said. Miscellaneous retailers reported a sales increase of 2.7%, followed by building material stores (+2.4%), gas stations (+2%), apparel stores (+1.3%) and restaurants (+1.3%). Sales at furniture stores decreased 2.4%, followed by sporting goods and hobby stores (-1.1%).