Retail sales up in May for second straight monthly gain

A shopper browses at the Cotton On store at the Del Amo Mall in May.

(Glenn Koenig/ Los Angeles Times )

Consumers gave retailers another boost in May as the warm weather inspired many shoppers to flock to stores.

Retail sales last month rose 0.5% from the previous month to $455.6 billion, the Commerce Department said Tuesday. That was the second straight month of increases, following a big 1.3% uptick in April.

Economists said it was a good sign for the economy after a recent spate of bad news about the job market. The Labor Department recently said that job growth virtually ground to a halt in May, after an already lackluster showing in April.

But analysts caution that a few months of growth doesn’t necessarily translate into a sustained mood to splurge among shoppers. Many have been holding back for years, opting to bank their savings from lower gas prices or use that money to pay down debts. Department stores and mall-based retailers have struggled this year, causing their stock prices to plunge.

After stripping out the volatile motor vehicle/parts sector, retail sales still grew by 0.4%, the Commerce Department said. Nine out of 13 categories reported gains.

Clothing and accessories shops saw an increase of 0.8%. Non-store retailers, including e-commerce retailers such as Amazon, posted a 1.3% jump. Gas stations, boosted by a recent jump in prices at the pump, climbed 2.1%.

A few areas did see declines. General merchandise stores, dragged down by the poor performance of department store chains, fell 0.3%. Building and garden shops reported a 1.8% drop.

[email protected]

Follow @ByShanLi on Twitter