US retail sales boom in May, but inflation is lurking
WASHINGTON — U.S. retail sales rose by the most in six months in May, a sign that confident consumers are leading a strong economic rebound after a slow start to the year.
Yet with high gas prices and inflation eating away at income gains made by workers, Americans may not be able to maintain this level of spending.
Retail sales jumped 0.8 per cent last month, the Commerce Department said Thursday, the largest increase since November. Excluding the volatile gas and auto categories, sales rose 0.8 per cent. April’s sales growth was revised higher, from 0.2 per cent to 0.4 per cent.
Americans are highly confident about the economy, buoyed by steady job gains, an unemployment rate at an 18-year low, and the Trump administration’s tax cuts. The solid job gains have meant more Americans are earning paychecks, and spending them.