Daniel Acker/Bloomberg News
Retail sales rose 0.3% in May after a revised 0.5 % gain in April that was much larger than previously estimated, the Commerce Department reported.
The median forecast of 83 economists surveyed by Bloomberg News called for a 0.6% advance. Consumers are ramping up spending as a healing job market and rising home values boost balance sheets.
“The more jobs there are, the more people with money in their pockets,” said Ward McCarthy, chief financial economist at Jefferies. “One of the key components of this cycle is that consumer spending has been moderate because income growth has been moderate.”
The reading for April previously was reported as a 0.1% increase. Six of 13 major retail categories showed gains last month, indicating the advance wasn’t broad-based, Commerce’s June 12 report showed.