“Even with easing consumer confidence, high gas prices and rising interest rates, consumers continued to spend [in May],” said Rosalind Wells, chief economist for NRF. “A housing market plateau and inflation and interest rate pressures will prove to be the deciding factor for the remainder of the year.”

May retail sales released by the U.S. Commerce Department show that total retail sales, including non-general merchandise categories such as autos, gasoline stations and restaurants, increased 9.4 percent unadjusted year-over-year, and 0.1 percent from the previous month. April sales also were revised upward from initial reports of 0.5 percent to 0.8 percent.

The strongest increase in retail sales came in the building material and gardening equipment and supplies category, with 14.4 percent growth unadjusted over last year. Other top performers included electronics and appliance stores, with sales increasing 7.2 percent unadjusted from last May; furniture and home furnishing stores, with 9.1 percent; clothing and clothing accessories stores, with 6.7 percent; health and personal care stores, with 7.6 percent; and sporting goods, hobby, book and music stores, with 9.3 percent. [August 2006 PET AGE]