WASHINGTON (Bloomberg) - Retail sales in the US rose twice as much as forecast in May as Americans used their tax rebates to shop at electronics and department stores, and record gasoline prices swelled service-station receipts.

Purchases climbed one percent, the most since November, following a 0.4 percent gain the prior month that was previously reported as a drop, the Commerce Department said in Washington. Purchases excluding gasoline increased 0.8 percent last month.

The figures indicate the government's stimulus plan and the Federal Reserve's seven interest-rate cuts since September are benefiting retailers such as Wal-Mart Stores Inc. and keeping the economy growing. The report bears out Fed chairman Ben Bernanke's assessment this week that risks of a "substantial downturn" have receded.

"The gain is largely because of the rebate, but maybe the American consumer is just hanging in a lot better than we anticipated," said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. "It casts more doubt on whether the economy is in a recession."

A separate report yesterday showed that prices of goods imported to the US rose 2.3 percent in May from the previous month, less than economists had forecast.

Yesterday's report showed sales at every merchant category increased last month, except for miscellaneous retailers.

Purchases of electronics increased 0.7 percent and sales at department stores jumped 1.2 percent, the most since March 2007. Building-material retailers sold 2.4 percent more than in the prior month.

Sales at automobile dealerships and parts stores increased 0.3 percent after dropping 2.1 percent in April.

That contrasts with industry figures that showed cars and light trucks sold at an annual pace of 14.3 million annual pace in May, the fewest in almost a decade, as sales of pick-up trucks and sport-utility vehicles plummeted.

Filling station sales surged 2.6 percent in May. Regular gasoline reached as high as $3.98 a gallon in late May, about 53 cents more than the average for the prior month, according to AAA.

Excluding autos, gasoline and building materials, the retail group the government uses to calculate gross domestic product, sales climbed 0.8 percent, after a one percent increase the prior month. The government uses data from other sources to calculate the contribution from the three categories excluded.

Wal-Mart Stores Inc., the world's largest retailer, had a 3.9 percent jump in same-store sales last month, as consumers bought cut-rate staples and took advantage of promotions linked to the tax rebates.