U.S. retail sales surged by 17.7 percent last month as more businesses were allowed to reopen amid the relaxing of lockdowns, reversing a record plunge of 16.4 percent in April, data from the U.S. Census Bureau showed on Tuesday.

The reading nearly doubled analysts' forecasts and posted the biggest monthly increase ever. A Bloomberg survey predicted a 8.4-percent gain in May, while Reuters expected the figure to be around 8.0 percent.

The gain exceeded the previous record increase of 6.7 percent in October 2001 as Americans resumed spending following what was then a record pullback in the aftermath of the 9/11 attacks on the United States.

The rebound can be attributed to strong sales performance in auto and food categories, as the easing of lockdowns across the country allowed car dealership showrooms to reopen. May's sales rate climbed above 12 million vehicles per year after dropping below nine million in April, according to data provided by Wards Intelligence.

Sales of motor vehicles jumped by 44.1 percent and that in restaurant receipts rose by 29.1 percent.

Meanwhile, Clothing and accessories stores posted a 188-percent gain, while sporting goods, hobby, musical instruments and bookstores rose by 88.2 percent. Electronics and appliance stores recorded a 50.5-percent surge in sales.

Consumer spending contracted at a 6.8-percent rate in the first quarter, the sharpest drop since the second quarter of 1980. The economy contracted at a five-percent rate in the January-March quarter, the deepest contraction since the 2007-2009 Great Recession.

Stock-index futures extended gains and 10-year Treasury yields rose after the release.

(With input from Reuters)