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Retail sales tick up slightly during May

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WASHINGTON — U.S. retail sales increased for the second consecutive month in May, rising 0.5% following April’s 1.3% gain, according to the Commerce ­Department.

Core retail sales, which exclude automobiles, gasoline, building materials and food services, increased 0.4% last month after an upwardly revised 1% gain in April. The core retail sales correspond most closely with the consumer spending component of the economy. Consumer spending accounts for about two-thirds of the nation’s gross domestic product.
The solid retail sales figures for April and May could compel economists to raise their second quarter GDP growth estimates, which are currently around a 2.5% annualized rate, Thomson Reuters reported. The economy grew at a 0.8% rate in the first quarter.

In May, gasoline station sales rose 2.1%, the Commerce Department said. Auto sales increased 0.5% last month.

Sales were up 1.3% at sporting goods stores in May, 0.8% at restaurants and bars, 0.3% at electronics and appliance stores, 0.6% at health and personal care stores, 0.8% at clothing stores and 1.3% online. Nonstore sales, largely e-commerce sales by Amazon.com Inc. and others, outpaced overall retail sales, rising 1.3% in May, and were up 12.2% from a year earlier.

Partly offsetting the gains were declines of 0.9% at department stores, 1.8% at building material stores and 0.1% at furniture stores.

Costco Wholesale Corp. said net sales in the four weeks ended June 1 increased nearly 1% to $9.23 billion from $8.98 billion. Core same-store sales, which exclude gasoline price deflation and foreign-exchange fluctuations, increased 4%, the company reported. Comps were particularly weak in Southern California due to lower gasoline prices. Costco’s U.S. comparable-warehouse sales rose 1%. Sales in Canada declined 1% and, in other international stores, were down 3% in the period.

Discount store operator Fred’s Inc. said sales in the four weeks to May 28 fell 1% to $164.8 million from $167.2 million in May 2015. Comparable-store sales for the month declined 0.4%, in contrast to an increase of 0.3% for the year-earlier period.


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