Retail sales look strong, with a solid gain in May and upward revision to prior month

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Retail sales look strong, with a solid gain in May and upward revision to prior month
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Retail sales climb 0.5% in May and April sales are revised upward

The numbers: Reports of the death of the American consumer were greatly exaggerated as the May retail sales data rose at a healthy pace and the decline in the prior month was revised to show a gain.

There was a big rise in auto sales, but the even when that was stripped out, retail sales rose 0.5%, the government said.What happened: Almost all categories showed gains in May. The only decline were food and beverage stores, department stores, miscellaneous stores and clothing. Auto sales rose 0.7%. They account for about one-fifth of all retail sales. Retail sales excluding autos and gas also rose 0.5%.Big picture: Retail sales have been choppy this year, raising some doubts about the health of the overall economy. Economists have been counting on consumers to keep spending at a level to prolong an expansion that will set a record for the longest ever later this summer.

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