US retail sales rose more than expected in June as Americans bought cars and a variety of other goods, reinforcing views that economic growth picked up in the second quarter.
The Commerce Department said that retail sales increased 0.6% last month after a downwardly revised 0.2% gain in May.
It was the third month of gains in a row and lifted sales 2.7% from a year ago.
May sales were previously reported to have increased 0.5%. Excluding cars, petrol, building materials and food services, retail sales shot up 0.5% last month after an upwardly revised 0.5% increase in May.
These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product. They were previously reported to have risen 0.4% in May.
Economists polled by Reuters had forecast overall retail sales edging up 0.1% and core sales gaining 0.3% last month.
Coming on the heels of a surge in job growth in June and an acceleration in manufacturing and services sectors activity, the solid retail sales report suggested the economy had regained speed after a first-quarter lull.
Retail sales will likely remain supported in the wake of a rally on the US stock market, rising wages and higher savings.
The steady stream of upbeat data and Wall Street's surge could raise the probability of an interest rate increase from the Federal Reserve later this year.
The US economy grew at a 1.1% pace in the first three months of the year.
US retail sales in June were buoyed by purchases of building materials and garden equipment, which jumped 3.9%, the largest increase since April 2010.
Online retail sales rose 1.1%, while receipts at sporting goods and hobby stores shot up 0.8%. There was also a boost from furniture sales, which rose 0.5%. Car sales edged up 0.1% after declining 0.5% in May. Americans also spent more on grooming.
Sales at US electronics and appliance outlets were unchanged, while receipts at service stations increased 1.2%, reflecting recent increases in petrol prices.
But restaurants and bars sales fell 0.3% and clothing sales dropped 1%.
