US retail sales up 0.3 per cent in May, adding to signs of spring economic rebound

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In this June 5, 2014 photo, Chelsea Vick shops for clothes at Wal-Mart Supercenter in Rogers, Ark. The Commerce Department releases retail sales data for May on Thursday, June 12, 2014. (AP Photo/Sarah Bentham)

U.S. retail sales rose for a fourth straight month in May, adding to evidence that consumer spending will contribute to stronger economic growth.

The Commerce Department says consumer spending rose 0.3 per cent in May, helped by a surge in demand for autos. The result follows a 0.5 per cent climb in April and a 1.5 per cent surge in March, which was the biggest one-month gain in four years.

Retail sales had fallen sharply in January as winter storms cut into shopping and various other types of economic activity. Overall economic growth went into reverse in the first quarter, shrinking at an annual rate of 1 per cent. But the revival in consumer spending has led economists to predict a solid rebound to 3 per cent growth or better in the current April-June quarter.

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