Retail sales grew in May as an improving job and housing market led to consumer confidence reaching five-year highs.

A preliminary tally of 13 retailers found that revenue at stores opened at least a year—an indicator of a store's health—increased 3.4% in May compared with the same month a year ago, according to the International Council of Shopping Centers (ICSC), Associated Press (AP) reported. The figure rose 3% in April.

"It's good, not great," said Michael Niemira, ICSC's chief economist. "Some underlying improvement in the U.S. economy along with an improving 'wealth effect' from rising stock and home prices is helping to lift the sales pace."

Niemira expects the gradual increase to continue, predicting revenue to rise 3% to 3.5% in June.

Big chains such as Wal-Mart, Target and Macy's don't report monthly revenue. The retailers that do report monthly data represent about 6% of the $2.4 trillion in U.S. retail sales, AP reported.

Accenture Managing Director Chris Donnelley said the May numbers, combined with previous months' figures were encouraging.

"Overall, it's a positive sales trend," he said, noting that the numbers were consistent across all sectors, including discount stores, specialty apparel and teen stores. "Everybody seems to produce good numbers, but nobody had a breakthrough for May."

The U.S. Labor Department said that the number of Americans seeking unemployment benefits fell 11,000 last week to a seasonally adjusted 346,000, a level consistent with steady job growth, AP reported. Housing prices rose 11% in March, the sharpest 12-month increase in seven years.

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