Retail sales rose 0.1% in April, in line with estimates.
Retail and food services sales in the United States increased slightly in April, rising 0.1% for the month to $724.1 billion, in line with economists’ estimates.
However, retail sales and food services sales growth was considerably slower than it was in March, when it rose 1.7%, revised up from 1.4%. This was likely due to a buying spree by consumers in March before the tariffs kicked in.
But compared to April 2024, retail sales jumped 5.2% in April.
Retail trade services, which include just retailers, dropped 0.1% overall in April, but jumped 4.7% year-over-year.
Food services and drinking establishments saw a 1.2% sales increase in April and rose 7.8% since April of 2024. Meanwhile, sales for motor vehicles and parts dealers dropped 0.1% in April, but surged 9.4% year-over-year.
Among the groups that saw April gains were building materials, up 0.8% in April and 3.2% YoY; furniture and home furnishing stores, up 0.3% in April and 7.8% YoY; electronics & appliance stores, up 0.3% for month and 0.1% YoY; and non-store retailers, up 0.2% in April and 7.5% YoY.
Consumer Showing Cracks?
The groups that saw sales declines include: sporting goods, hobby, musical instrument, & book stores, down 2.5% in April, but up 1.7% YoY; general merchandise stores, down 0.2% in April, up 2.8% YoY; department stores, down 1.4% last month, down 3.4% YoY; clothing retailers, down 0.4% in April, up 3.5% YoY; miscellaneous retailers, down 2.1% in April, up 6% YoY; gas stations, down 0.5% for the month, down 6.8% YoY; health and personal care stores, down 0.2% for April,. Up 8.5% YoY; and grocery stores, down 0.1% in April, up 2.7% YoY. Food and beverage store sales were flat in April, up 2.7% YoY.
For the first four months of the year, total retail and food services sales are $2.73 trillion, up 3.8% from the same period the previous year.
Retail trade sales are $2.36 trillion, up 3.7%, while sales at food services and drinking places is $376 billion, up 4.6% year-over-year.
Overall, the report does not show a major impact on retail sales from the tariffs, as many companies stockpiled goods and made an effort to maintain prices, as the inflation data for April shows. But consumers were more cautious in April as the economy slowed and higher tariffs went into effect.
“Retail sales shows there might be initial signs of cracks in the consumer,” said Cooper Howard, director, fixed income strategy at the Schwab Center for Financial Research. “There was weakness across the board.”
Stocks opened lower Thursday with the Dow Jones down 120 points, the S&P 500 of 16 points, and the Nasdaq dropping 135 points.
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