Investing.com - Retail sales in the U.S. rose for the third-straight month in May, underling optimism over the health of the economy and supporting the case for more interest rate hikes by year-end.
Retail sales increased by a seasonally adjusted 0.8% last month, according to the U.S. Commerce Department, easily surpassing expectations for a gain of 0.4%.
Retail sales for April were revised to a gain of 0.4% from a previously reported 0.3% increase.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, jumped by a seasonally adjusted 0.9%, compared to forecasts for a gain of 0.5%. Core sales rose 0.4% in the preceding month.
Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.