The US retail sales rose in May, and data for the previous two months were revised upwards. This means that consumer spending is strong enough to limit the Federal Reserve’s lowering of interest rates in the near future.

Total retail sales increased by 0.5% compared with the previous month, after an increase of 0.3% in April. The April data were actually revised upwards. By comparison, economists were expecting a growth of 0.6%.

Retail sales, excluding services in the food sector, car dealers, building materials stores and gas stations also rose by 0.5%, outpacing the 0.4% growth forecast. Thus, the lowest half-century unemployment in the US supports consumer spending, which accounts for the bulk of the country’s economy. Against the weaknesses in other indicators, such as job creation, investors expect the Fed to cut interest rates in July, as President Donald Trump’s trade warfare on growth.

More information on monetary policy is expected on Wednesday after the Fed’s meeting.

Eleven of the 13 major retail categories reported growth. The biggest was reported by online merchants of 1.4%.

Revenue from gas stations increased by 0.3%. The data is not adjusted for price changes, so higher retail sales suggest higher demand as fuel prices have fallen.

This week’s consumer price index data showed that gasoline prices were down 0.5% in May compared with the previous month.