May Retail Sales Up 1.4%

Washington, DC, June 13, 2007--Retail sales in May rose 1.4 percent as consumers spent on cars, clothing and building materials, according to a Commerce Department report. It was the biggest increase in the gauge since January 2006.

April sales were revised upwardly to a 0.1 percent decline from their original estimate of 0.2 percent drop.

Economists has been expecting a gain of 0.6 percent.

Excluding automobiles sales rose 1.3 percent following a 0.1 percent April rise that was originally reported as flat.

Sales at gasoline stations rose 3.8 percent in their strongest monthly increase since April 2006, but excluding gasoline, retail sales still rose a healthy 1.2 percent.

Sales at building materials and garden supplies retailers rose 2.1 percent in May after a 2.2 percent decline in April, while clothing retailers rang up a 2.7 percent increase in May after a 1.5 percent drop in April. Motor vehicle and parts dealer sales rose 1.8 percent after a 0.5 percent fall in April.