NEW YORK — U.S. retail sales increased 0.9% in May, according to Commerce Department data. April U.S. retail sales were revised to show a 0.4% gain.

U.S. retail sales excluding gas stations increased 0.7% in May. The economic control group, which excludes sales from food services, automobiles, building materials, and gas stations, increased 0.7% in May. Government tax refunds distributed in April and May contributed to increased retail spending.

U.S. online sales increased 1.5% in May. U.S. home furnishing and furniture store sales increased 1%, while U.S. clothing and accessory store sales increased 0.3%. In contrast, U.S. electronics and appliance store sales decreased 0.5%, and U.S. department store sales declined in May. U.S. restaurant sales decreased 0.1% in May.

Kathy Bostjancic, Chief U.S. Economist at Nationwide, wrote, "The stronger-than-forecast and broad-based gains in May retail sales show that consumers continued to spend strongly despite higher gasoline prices in the month. The large tax refunds and overall tax reductions for households this year and the recent strengthening in employment growth helped buffer the negative drag from higher gasoline prices."

U.S. consumer prices increased 4.2% year-over-year in May. U.S. consumer prices increased 0.5% month-over-month in May, following increases of 0.6% in April and 0.9% in March. The national average price for a gallon of gasoline decreased to $4.02, an 11% drop from the previous month. The national average price for a gallon of gasoline has remained at or above $4 since March, and visits to gas stations at BJ's, Costco, and Sam's Club accelerated in early March alongside rising fuel prices.

Sam Tombs, Chief U.S. Economist at Pantheon Macro, wrote, "Consumption regained some momentum over the spring, but the sugar rush from bigger-than-usual tax refunds will wear off soon."