Economists believe that sales at U.S. retailers rose in May as the job market looks up and consumer confidence rises to boost automobile, home furnishing and clothing sales.
Experts predict a 0.4% rise, which would be the biggest in three months. April saw an increase of 0.1%, according to a forecast from a Bloomberg survey.
Gap Inc. and General Motors are two companies who have reported significant gains and hiring increases thanks to higher home and stock prices. Other brands who revealed May gains include L Brands Inc., Victoria’s Secret and Bath & Body Works.
Glenn Murphy, Gap chairman and CEO, said: “We are pleased with the positive customer response to summer product across our brands and the continued momentum in the business.”
Ted Wieseman, an economist at Morgan Stanley, explained: “Consumers are not feeling the need to pare back their spending to offset the impact of the tax increases, with confidence in the labor market rising and balance sheets improving.”
In April, payrolls rose by 149,000 workers, and last month saw another 175,000 enter the labor force.