U.S. retail sales increased 17.7% in May compared to April for a record spike as businesses reopened following coronavirus lockdowns, according to just-released Commerce Department data.
The growth followed record dips in March and April, The Associated Press reports. Overall buying in May was still 6.1 lower than it was in the same month a year prior.
The increase brought hopes that the economy may be starting to recover. It was accompanied by the addition of 2.5 million jobs.
“While the big increase in retail sales in May is encouraging, there is still a huge amount of uncertainty about the strength of the rebound,” Gus Faucher, chief economist at PNC Financial Services, was quoted saying, adding that it could be afffected by “a lot of factors outside of the economics.”
Some of the May rebound was probably due to the government’s infusion of money into the economy, including stimulus payments and expanded unemployment checks, the AP reports. In all, aid to families and companies totaled $3 trillion.
As many as 25,000 U.S. retail stores are likely to close their doors for good this year, compared to 9,000 last year, according to Coresight Research.
Read more at the The Associated Press