Retail sales posted a strong gain in April.

Tuesday the U.S. Commerce Department reported a 1.2% increase for the month, the biggest gain in six months.
The jump, which also follows a 0.1% gain in March, was due mainly to increased sales of cars, up 1.9%, and building materials, up 2.7%. Sales increased 1.9% at health and beauty stores, while sales at clothing stores posted a 0.7% gain. Clothing, food, furniture and electronics/appliances sales were unchanged or slightly lower.
Newport Communications Senior Economist Jim Haughey describes this news as surprising following several months of sluggish performance.
“This assures another above average gain in Gross Domestic Product growth this quarter," he says, "and probably means that net inventory changes in consumer goods distribution is changing from de-stocking to re-stocking sometime during the spring."
Consumer spending accounts for two-thirds of economic activity in the U.S., and this will no doubt aid in the recovery of the economy, especially considering that unemployment reached an eight-year high in April, coming in at 6%, which usually translates into less spending.