Retail sales jumped a record 17.7% last month, the government said Tuesday. Economists polled by MarketWatch had forecast an 8.5% increase.
The numbers: Sales at U.S. retailers roared back in May as the economy started to reopen and claw its way out of what’s likely to have been the shortest and deepest recession in American history.
What happened: Sales leaped 44% at auto dealers to give a bright gloss to the retail report. The auto sector typically generates about one-fifth of all retail spending.Sales leaped 188% at clothing stores, 90% at home-furnishing stores and 88% at stores that sell books, music, sporting goods and other hobby items. All three groups were hit hard in April and March.
Still, food-service sales in May were down 40% compared to a year earlier, pointing to an ongoing struggle by hundreds of thousands of restaurants to survive the current crisis. Many have had to cope with a smaller number of customers due to social distancing requirements, reducing their profits and forcing them to permanently cut staff.
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