UPDATE 1-Mexico's retail sales improve in May

* Mexico same-store retail sales rise 6.2 pct in May

* Reading hints at recovering in sector (Recasts, adds detail on sector, economy)

MEXICO CITY, June 14 (Reuters) - Mexican retailers group ANTAD said on Monday its members' same-store sales rose 6.2 percent in May, hinting that the battered sector could be picking up.

Mexico's economy shrank in the first quarter compared with the last quarter of 2009, hit in part by weak consumer demand although there have been recent signs of improvement.

Same-store sales at Mexican department stores rose 19.0 percent, year over year, during May while same-store supermarket sales were up 3.9 percent, ANTAD said.

Mexico's retail sector is led by Wal-Mart de Mexico (WALMEXV.MX), followed by smaller competitors like Soriana (SORIANAB.MX) and Comercial Mexicana (COMEUBC.MX).

Overall retail sales, including those at new stores, rose 11.8 percent in May.

Mexico is emerging from its worst recession since the 1930s but the retailers have lagged behind export-driven companies. Retail sales in April fell 1.0 percent.

Mexico's consumer confidence index rose to its highest level in 10 months in May, boding well for the country's retailers. (Reporting by Noel Randewich; Editing by Bernard Orr)