WASHINGTON, June 12: US retail sales surged a stronger-than-expected 1.0 per cent in May as Americans splurged out on gasoline, consumer goods and restaurant meals, a government report showed on Thursday.

Spending on gasoline has been stoked by a sharp spike in fuel costs, but the sales gains were spread across a variety of products and sectors, raising expectations that US economic growth is firing up.

“Recession? What recession?” asked Joel Naroff, the president of Naroff Economic Advisors.

“Yes, we bought a lot more gasoline as prices skyrocketed. More importantly, you name the good, electronics, appliances, clothing, health care, food or general merchandise and sales rose. We even ate out more. That is impressive, to say the least,” Naroff said.

Core retail sales, which strip out vehicle sales, increased by 1.2 per cent, the Commerce Department said in its monthly survey.

The report bolstered the position of some economists who believe the US economy will not slump into a recession this year. Total retail sales rang up $385.4 billion during the month.

Other analysts believe a nagging housing downturn, a related credit squeeze and skyrocketing energy costs will pitch the world's largest economy into a downturn.

Although the headline number was buoyant, it also suggests that Americans’ wallets are being stretched by rising gasoline costs which could crimp other spending.

The report’s headline and core readings were stronger than expected. Most economists had predicted that retail sales rose 0.6 per cent and that core sales increased 0.7 per cent last month.

The gain in overall sales was the strongest since November.—AFP