Retail sales in the U.S. probably increased in May by the most in three months as Americans took advantage of cheap borrowing costs to purchase more expensive goods like cars, a new report said Thursday.
The May performance was the strongest in three months and followed a 0.1% increase in April. Car sales rose 1.8%, and sales of gasoline dipped 0.2% as prices fell. Sales at restaurants and bars, a closely watched indicator of consumer sentiment, dropped 0.4% after a 1.1% gain in April.
Car sales have been strong for most of the year, helped by a combination of easier credit, a rebound in home prices and strong stock market gains, which combine to help improve household wealth. Automakers reported industry-wide U.S. new car sales were up 8.2% in May.
A core measure of sales with autos and gas stripped out advanced 0.3% last month.
"In spite on fluctuating gas prices, severe weather in much of the country and fiscal policy uncertainty, consumers continue to demonstrate an inherent resiliency and flexibility," said Matthew Shay, chief executive of the National Retail Federation trade group, in a statement.
The Commerce Department will release the retail sales figures at 8:30 a.m. in Washington. Economists' estimates in the Bloomberg survey ranged from a decline of 0.1 percent to a gain of 0.8 percent.
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