WASHINGTON (AP) – Americans ramped up their spending on autos, building materials and clothing in May, a sign that strong job growth is starting to boost retail sales.
The Commerce Department says retail sales climbed a seasonally adjusted 1.2 percent in May, following a 0.2 percent gain in April. Sales have risen 2.7 percent over the past 12 months.
The upswing in shopping reflects greater confidence in the economy. Consumers upped their spending by more than 2 percent last month at auto dealers and building materials stores. Employers have added more than 3 million jobs over the past year, but until May many workers appeared to be saving as much of their paychecks as they could.
Excluding the volatile categories of autos, gas, building materials and restaurants, sales rose a solid 0.7 percent.