US retail sales grow above expectations in May 2016

US retail sales grow above expectations in May 2016, indicating that consumption will foster economic growth in the second quarter. The data of the Ministry of Commerce show growth of 0.5%, after jumping 1.3% during the last month, which was the biggest increase in a year. The median forecast of economists was for 0.3% growth. Such is the increase in retail sales, which are excluded from cars and gasoline.

Steady gains in consumption will help acceleration of the economy from the weak first quarter. The increase in wage growth does ensure that households will continue to walk the path of economic expansion.

With improved weather in much of the US last month, Americans spent more on clothes. Online stores also enjoying increased demand. Grow sales in restaurants and cafes, which are regarded as a litmus test for services.

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