US Retail Sales Rise Again in May

In US retail sales rose by a stronger than expected 0.5% in May 2016 (compared to market expectations for a 0.3% increase) to build on a strong April gain.

Excluding the auto sector, sales rose by 0.4% with 'control' sales (retail sales ex-autos, gas stations, and building material stores) also posting a 0.4% increase that built on an outsized 1.0% jump in April.

The gain in May 2016 sales was broadly based, with only a 1.8% pullback in sales at building material stores (a third consecutive monthly decline for that component) and a 0.3% dip in general merchandise stores providing significant partial offset. Higher gasoline prices likely were the main factor behind a 2.1% jump in sales at gasoline stations; however, most other components also posted increases. Strong increases during the last two months have left overall sales up an annualized 5.7% to date in the second quarter of 2016 with 'control sales', which feed directly into the Bureau of Economic Analysis' (BEA) quarterly real consumer spending estimates, up by a similar 5.9% in the second quarter to date.

Source: Actionforex.com