US retail sales rise 0.9% in May beating forecasts

U.S. retail sales surged in May, handily beating expectations and signaling resilient consumer demand despite persistent inflationary pressures and high gasoline prices. The Commerce Department reported on Wednesday that retail sales jumped 0.9% last month, nearly double the gain economists had forecast, following a revised 0.4% increase in April. Year-over-year, sales climbed 6.9%.

The increase was broad-based, with 11 of 13 categories posting gains. Spending at gasoline stations led the advance, rising 3.4% as pump prices climbed to four-year highs amid the recent conflict involving Iran. Receipts at motor vehicle and parts dealers rebounded by 1.2%, marking the largest monthly advance in nearly a year. Online retailers saw sales rise 1.5%, while spending increased at furniture, health, personal care, apparel, and hobby stores.

A key measure watched by economists, known as the "control group," which excludes volatile categories like autos, gasoline, building materials, and food services, rose a solid 0.7% in May. This figure feeds directly into the calculation of gross domestic product and suggests consumer spending, which accounts for more than two-thirds of U.S. economic...