Strong Job Market Boosts May Retail Sales

RAPAPORT... US retail sales rebounded in May as the economicand financial outlook stabilized, according to the National Retail Federation(NRF). Total purchase value grew 3.2% year on year, with salesrising in nearly all categories, the trade organization reported last week.Retail sales increased 0.5% over the previous month, after the government revisedits April data. It initially reported a 0.2% decline in April, which it updatedto a rise of 0.3%.  "[The figures] reinforce the ongoing strength of theconsumer and are consistent with a pick-up in the pace of the economy in thecoming months," said NRF chief economist Jack Kleinhenz. "The strong jobmarket, recent income gains and elevated confidence translates into ongoingsupport for spending." The general improvement follows a slowdown in sales atspecialist jewelry stores in the first four months of the year. Combined salesfor the store category in the January-to-April period declined 4.5% year on year,while April sales fell 2.3% over the previous year, according to data from theUS Census Bureau. Jewelry figures for May are not yet available. The NRF cautioned the future of retail could beunsteady due to an escalation in trade tariffs, which may lead to a"considerable" pullback in spending. Still, the Conference Board noted a more positiveoutlook as its Leading Economic Index - which forecasts future economic activity - rose 0.2% for the month.   "Labor markets remain strong, with unemployment at itslowest rate since the 1960s," it explained. "Wages continue to grow at anelevated pace and may even accelerate during the year. Correspondingly,consumer confidence has stayed at historically high levels. These factorsshould keep consumer spending growth at a healthy level." Image: Consumers shopping at a mall. (Libreshot)