Washington, DC, Jun. 14--Boosted by higher sales of gasoline and autos, U.S. retail sales jumped 1.2% in May after dropping in April, the Commerce Department estimated Monday.
Gasoline sales rose 4% while motor vehicle sales increased 2.7%, the biggest increase in six months as automakers piled on more incentives to move the merchandise.
Excluding vehicles, sales increased 0.7% in May after dropping 0.1% in April. Excluding both vehicles and gas, sales rose 0.3% in May after sinking 0.1% in April.
Total sales were in line with expectations of economists surveyed by CBS MarketWatch.
In April, sales fell a revised 0.6%.
May's sales were up 8.9% in the past 12 months. Sales in the first five months of 2004 were running 8.4% ahead of last year's pace. The figures are adjusted for seasonal differences, but are not adjusted for price changes.
In a separate report, the Commerce Department said the U.S. trade gap widened to a record $48.3 billion in April as exports had their largest decline since last August.
The retail sales report is not likely to have much bearing on the Federal Reserve's thinking about interest rates. Consumer spending remains very healthy as expected. For the Fed, the prime considerations are the inflation rate and job growth.
The Labor Department will report on the May consumer price index on Tuesday, just ahead of testimony by Fed Chairman Alan Greenspan on Capitol Hill in support of his nomination as chairman for a fifth term.
In May, sales of nondurable goods were stronger than for durables.
Sales at general merchandise stores rose 1.3%, including a 0.8% gain at department stores. Sales at clothing retailers gained 0.9%.
Sales at food and grocery stores increased 0.9%, while sales at restaurants and bars fell 0.3%.
Sales at health and personal care stores increased 0.9%. Sales at leisure-time stores increased 0.1%.
Durables were weaker. Sales at building material, garden and hardware stores dropped 1.4%. Sales at electronics and appliance stores increased 0.1%. Sales at furniture stores dropped 0.6%.
