Consumer spending in the United States strengthened more than anticipated in May, according to figures released Wednesday by the Commerce Department.
Retail sales rose 0.9% during the month, following a revised 0.4% increase in April. The latest reading exceeded economists’ expectations for a 0.5% gain.
The April figure was revised lower from the initially reported 0.5% increase.
Core demand also remained solid. Excluding sales from motor vehicle and parts dealers, retail sales advanced 0.8% in May after increasing 0.7% in the previous month.
Analysts had expected ex-auto retail sales to rise by 0.5%, indicating that spending growth was broader than forecast and not solely driven by the automotive sector.