U.S. retail sales increased 18% in May, report

Retail shopping in the U.S. increased 17.7% during May, marking the biggest jump in monthly spending on record since 1992. Though, total spending remains below the levels seen prior to the coronavirus pandemic, the Commerce Department reported Tuesday.

May's increase also follows the largest monthly shopping drop on record – in April when sales declined 14.7%. May's retail sales amounted to $486 billion, while February's pre-pandemic number was $527 billion.

The significant increase in May's retail numbers is another indication that the worst of the pandemic-induced economic turndown may be over. Economists predicting the May numbers, underestimated the rise by about 10% – most anticipated a rise of closer to 8%.

Clothing and furniture sales, two categories hit hard during the onset of the virus, posted significant gains in May. Retail executives have noticed that shoppers are returning to reopened stores faster than was expected.

Online shopping numbers continue to rise as well. Amazon.com Inc. posted an 8.4% growth in April. 

Some economists say an increase in retail sales does not equal the economic impact of the pandemic ending. Many anticipate that the one time government payment of $1,200 and effects of enhanced unemployment payments will fade, before the pandemic is officially over.