US Advance Retail Sales rose by the most in 6 months during May, as the index jumped 1.0 percent from the month prior. Excluding autos, this figure was even more optimistic as the index surged 1.2 percent. A breakdown of the index shows broad-based gains, but the most notable one was that seen in the gasoline station component, which increased 2.6 percent from a month ago and 15.3 percent from a year earlier. Since this report is not adjusted for inflation, this rapid increase skews the headline reading a bit, as gasoline prices steadily rose above $3.50/gallon toward $4/gallon over the course of May. Nevertheless, nearly every other component showed improvements as well, including building materials (+2.4 percent), general merchandise (+1.2 percent ), and electronics (+0.7 percent). The news will help to alleviate some of the bearish sentiment on the US economy as spending rebounds despite deteriorating labor market conditions and whithering consumer confidence, but it is clear that rising prices remain a problem and could constrict spending going forward. – Terri Belkas, Currency Analyst for DailyFX.com