US retail sales pick up in May

WASHINGTON, June 13 (AFP): US retail sales picked up in May, boosted by auto sales, government data showed Thursday. Retail sales in May rose 0.6 percent to $421.1 billion, far stronger than April's 0.1 percent increase, the Commerce Department reported. Car and truck sales surged 1.9 percent, from a 0.8 percent gain in the prior month, as the auto industry continued to be a bright spot in the economy. Motor vehicles and parts sales rose 1.8 percent. Excluding them, retail sales were up 0.3 percent, according to data not adjusted for price changes. Ex-auto sales were flat in April. The May gain was double the 0.3 percent increase expected by analysts. Retail sales, a key indicator of the consumer spending that drives the bulk of the US economy, rose 4.3 percent from a year ago. "All told, the consumer continues to shoulder the recovery but just enough to keep the economy growing around 2.0 percent," said Ryan Sweet of Moody's Analytics. Facing flat income gains, consumers cut spending on a range of discretionary goods, including furniture, electronics and appliances, and clothing. Sales at department stores, restaurants and bars, and at gasoline stations fell slightly. Building and garden suppliers saw a 0.9 percent gain, while sales at food and beverage stores rose 0.7 percent. "While not very strong, consumer spending continues to show resilience, consistent with the labor market data -- including jobless claims this morning," said Jim O'Sullivan of High Frequency Economics. The Labor Department reported new claims for US unemployment insurance benefits, a sign of the pace of layoffs, fell for a second straight week last week, by 12,000 to 334,000. The economy added 175,000 jobs last month while the unemployment rate edged up slightly to 7.6 percent, in part due to a sizable move back into the jobs market of people who had dropped out.