Americans increased their spending at retailers last month despite pressure from still-high inflation and rising borrowing costs. Thursday’s report from the Commerce Department showed that retail sales rose 0.3 percent from April to May, helped by stronger sales of auto dealers.
Economists were expecting a decline for the month. Retail sales have been bumpy this year after surging nearly 3 percent in January. Sales tumbled in February and March but then recovered in April.
The retail sales report offers only a partial look at consumer spending; it doesn’t include many services, including health care, travel and hotel lodging. Nor is U.S. retail sales data adjusted for inflation.