The Commerce Department reported Wednesday that U.S. retail sales rose 0.9% in May. This figure significantly exceeded the 0.5% consensus forecast. Spending accelerated from April’s revised 0.4% gain.
The control group of sales, used to calculate GDP, rose 0.7%. This core metric surpassed the 0.4% forecast. The data indicates broad-based spending rather than just higher fuel costs.
Resilient domestic demand eased concerns that inflation is curbing consumer purchasing power. The report offers a bullish signal for consumer discretionary stocks. Investors are now weighing how this strength might influence Federal Reserve interest rate decisions.