According to data released Thursday by the Commerce Department, U.S. retail sales rose sharply in May and a revised March posted an increase for the third straight month. The May retail sales seem a strong indication that a strong job market is finally is starting to bear fruit for the consumer economy, and Americans could finally are starting to feel good enough about their finances to start opening up their wallets again.

Retail sales rose 1.2% in May, a big improvement from the nearly flat 0.2% gain in April. Over the past 12 months, sales have risen a solid 2.7%. March retail sales were also revised upward to a 1.5% rise – the measure’s biggest monthly gain in five years.

It also hints that overall economic growth is set to rebound from a dismal first quarter of 2015, when GDP fell an estimated 0.7% thanks to a winter-driven slowdown in both consumer spending and housing activity. Some economists are expecting the GDP to come roaring back in the second quarter, with 3.1% estimated growth.

Auto dealers and gasoline stations posted the strongest sales, but most major retail segments saw healthy gains.

Last month, overall retail sales were buoyed by a 2% jump in receipts at car dealerships. Sales at service stations rose 3.7%, reflecting a rise in oil prices.

Sales at electronic and appliance stores gained 0.1%, while receipts at furniture stores increased 0.8%. Sales at clothing stores were up 1.5%.

Receipts at online stores climbed 1.4% and sales at sporting goods stores increased 0.8%.

Sales of building materials and garden equipment advanced 2.1%. Sales at restaurants and bars also nudged up 0.1%.

In a separate report, the Labor Department said Thursday that weekly applications for jobless aid increased 2,000 to a seasonally adjusted 279,000. The four-week average, a less volatile measure, rose 3,750 to 278,750.

Many economists have been predicting an uptick in sales because of steady job creation, somewhat improved wage growth, rising home sales and higher consumer confidence. Still, the picture that’s emerged since the economy exited recession in mid-2009 is one of stop-and-go spending by consumers.

Could this be the long awaited rebound?

WASHINGTON — U.S. retail sales increased slightly in June, evidence that consumers remain cautious despite steady job gains this year. Retail sales rose just 0.2% last month, the Commerce Department said Tuesday, held back by a sharp drop at building and garden supply stores.

So-called core sales, which strip out automobiles, gasoline, building materials and food services, and correspond most closely with the consumer spending component of gross domestic product, increased a solid 0.6% in June.

Core sales rose by a revised 0.2% in May. They were previously reported as being flat and economists had expected them to rise 0.5% in June.

Despite the below-expectations rise in overall sales, June’s retail sales report was the latest sign of the economy’s strengthening fundamentals, which could buoy optimism the recovery is on a self-sustaining path.

Sales also fell at restaurants and at auto dealers. The figures suggest that Americans are still reluctant to spend freely, limiting growth in the April-June quarter. While employers have stepped up hiring since January, wage growth remains weak and is barely keeping up with inflation. Retail sales are closely watched because consumer spending accounts for 70% of the economy.

The pace of U.S home construction slipped in May with many Americans still struggling to afford new houses.

Builders started work at a seasonally adjusted annual rate on 1.01 million homes last month, the Commerce Department said Tuesday. That was down 6.5% from 1.07 million in April.

Construction firms began work on fewer single-family houses, condominiums and apartments last month.

BUILDING PERMITS
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 991,000. This is 6.4% (±0.8%) below the revised April rate of 1,059,000 and is 1.9% (±1.4%) below the May 2013 estimate of 1,010,000.

Single-family authorizations in May were at a rate of 619,000; this is 3.7% (±1.2%) above the revised April figure of 597,000.

Authorizations of units in buildings with five units or more were at a rate of 347,000 in May.

HOUSING STARTS
Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,001,000. This is 6.5% (±10.2%)* below the revised April estimate of 1,071,000, but is 9.4% (±11.0%)* above the May 2013 rate of 915,000.

Single-family housing starts in May were at a rate of 625,000; this is 5.9% (±12.7%)* below the revised April figure of 664,000.

The May rate for units in buildings with five units or more was 366,000.

HOUSING COMPLETIONS
Privately-owned housing completions in May were at a seasonally adjusted annual rate of 897,000. This is 6.8% (±12.7%)*above the revised April estimate of 840,000 and is 24.8% (±17.1%) above the May 2013 rate of 719,000.

Single-family housing completions in May were at a rate of 618,000; this is 2.1% (±11.4%)* above the revised April rate of 605,000. The May rate for units in buildings with five units or more was 269,000.