U.S. retail sales rose nearly 18% in May; April decline revised up 2%

June 16 (UPI) -- U.S. retail sales for the month of May increased by nearly 18 percent, the Commerce Department said Tuesday in its monthly report.

The assessment pegged May growth at 17.7 percent over April, but 6.1 percent below figures from May 2019. It said sales totaled $485.5 billion for the month, an increase over about $413 billion in April.

The sales spike shattered Wall Street's expectations. Most economists anticipated an increase of about 8 percent over April's record retail plunge of 14.7 percent. Tuesday's report also revised up April's decline by almost 2 percent, from 16.4 percent.

The mark for May is the largest single-month retail growth spike in U.S. history, surpassing the previous mark set in October 2001 following the Sept. 11, 2001, terrorist attacks.

The assessment appeared to have a sizable impact on U.S. stocks Tuesday. Dow futures rose more than 800 points following the report's release.

Experts projected continuing strength with online sales and even modest rebounds in heavily affected sectors like restaurants, sporting goods and furniture.

The department said in its report Tuesday total sales between March and June, three months that were severely affected by the COVID-19 crisis, declined 10.5 percent compared to last year.

Before the health crisis, the U.S. retail sector was setting records for year-over-year growth, employment and investment. The figures for May, while positive, are still down compared to the same month in 2019.

"Is it possible the worst of the coronavirus pandemic is behind us? Maybe, but we are not out of the woods yet, and uncertainty abounds," National Retail Federation Chief Economist Jack Kleinhenz wrote this month in an economic review.

"Predicting what will happen is even more challenging than usual. While history often helps guide us, previous downturns offer little guidance on what is likely to unfold over the next six to 12 months."