U.S. retail sales jumped in May as households increased purchases of automobiles, clothing, and a range of other goods even as they paid more for gasoline, the government reported Thursday, indicating that the healthy job market is beginning to strengthen overall economic growth. The Commerce Department said retail sales increased 1.2 percent last month after a 0.2 percent gain in April. Retail sales have risen 2.7 percent over the past 12 months. Consumers increased spending by more than 2 percent in May at auto dealers and building material stores, evidence they are making longer-term investments. More people also are upgrading their wardrobes, with clothing sales rising 1.5 percent last month. Sales at gasoline stations increased 3.7 percent, largely reflecting the higher costs of fuel since April. Spending at restaurants was virtually flat last month, but over the past year, sales have surged 8.2 percent. Solid retail-sales data added to strong job growth in May and stabilizing manufacturing activity, suggesting the economy was finding momentum after starting slowly in the second quarter.
