US retail sales edged higher last month, rebounding after they fell for the second time in three months in April. Sales rose 0.1pc in May from April, and were up 5.1pc from a year earlier, the Commerce Department said today. Sales unexpectedly declined by 0.1pc in April and economists were expecting sales to fall a further 0.1pc last month. The increase in May would have been even greater but for price reductions at US gas stations for petrol, indicating that gains in consumer confidence since the war in Iraq are finally beginning to translate into higher spending. Excluding the auto sector and gasoline sales, retail sales rose 0.6pc in May. Most retail outlets outside the auto and gas sectors fared well in May, according to the Commerce Department figures. General merchandise stores, which includes department stores, reported a 0.7pc increase in sales while electronics and appliance stores saw sales surge 2.9pc, the biggest increase in 18 months. Furniture sales rose by 1.1pc. //www.fxcentre.com