Retail sales rose 0.9 percent in April
Retail sales rose 0.9 percent in April as a rebound in automobile sales and a pick-up in dining powered another monthly increase in consumer spending, according to data released Tuesday by the Census Bureau.
Sales by retailers, restaurants and bars totaled $677.7 billion in April, according to the Census Bureau, up from a revised March total of $671.6 billion. Retail sales are adjusted for seasonal spending pattern changes, but not for inflation.
Economists expected retail sales to rise 1 percent last month after auto dealers reported a sharp pickup in sales and restaurant activity rose in April. Both were key drivers of the April increase in retail sales, which has steamed ahead despite inflation hitting an annual rate of 8.3 percent last month, according to Labor Department data.
Sales by restaurants and bars rose 2 percent in April, in line with 1.9 percent monthly increase in March. Retail sales minus auto dealers and auto parts shops rose by 0.6 percent in April and retail sales without the food and beverage industry rose 0.7 percent.
Federal stimulus and the speedy development of COVID-19 vaccines in the U.S. drove a surge in consumer spending that began in early 2021 and has stretched through the first half of this year. Consumer spending has been resilient even in the face of several waves of COVID-19, supply chain snarls, and hiring troubles—all of which have fueled higher prices for many goods.
While the steady rise of retail sales has helped power a remarkably quick recovery for the U.S. economy, it also pushed inflation toward the highest annual rate in 40 years. The combination of unprecedented federal stimulus and several pandemic-driven supply chain issues—including material shortages, factory shutdowns, port bottlenecks and hiring issues—have left businesses unable to keep up consumer demand without major price increases.
Economists have hoped a shift in consumer spending from goods toward services would help reduce pressure on supply chains and help businesses keep up with demand overall. Even so, sales by non-store retailers, miscellaneous retailers, clothing stores, electronics and appliance stores, and department stores all rose in April.
Source: TEST FEED1
