Dive Brief:

• Retail sales rose 1.2% in May, 1% excluding auto sales, according to the monthly report from the U.S. Commerce Department.  Excluding both fuel and auto, retail sales rose 0.7% last month, beating expectations of 0.5%. Sales increased 2.7% year over year, and over the last quarter were are up 2.1% for the quarter year over year. Retail trade sales were up 1.4% from April 2015, and 2% above last year. 

• Some of the biggest boosts were at apparel retailers, where sales increased 1.5%, and at convenient stores, where sales increased 3.7%, the Commerce Department found.

• In physical stores, RetailNext found an increased “intent to buy,” with increased sales per shopper despite sales and traffic declines year over year. Conversion and average transaction value increased .5% and .8% respectively.

Dive Insight:

This is another report that supports the idea that economic weakness in the first quarter was not much more than a blip driven by the weather, problems at West Coast ports, and the strong dollar. That could mean that the Federal Reserve will soon raise interest rates, thereby introducing another challenge for retailers and their customers.

But many economists also see some hangover from consumers’ not-too-distant financial pain and believe that, and continuing stagnant wages, will continue to dampen sales somewhat.