Retail sales flat in April, falling short of Wall Street's expectations

05/15/2024 19:48
Retail sales flat in April, falling short of Wall Street's expectations

April's update on retail sales comes as economists are closely watching for any signs of weakening consumer demand amid sticky inflation and higher interest rates.

The US consumer showed signs of slowing in April.

Retail sales were flat in the month, according to data from the Commerce Department, furthering concerns about the state of the consumer amid sticky inflation and higher interest rates.

This marked a slowdown from the 0.6% month-over-month increase seen in March. Economists had expected a 0.4% increase in spending, according to Bloomberg data.

Excluding autos and gas, retail sales declined by 0.1% last month; expectations had been for a 0.1% increase.

Nonstore retailers led the declines, falling 1.2% from the month prior. Sporting goods and hobby stores also declined 0.9%. Meanwhile, sales at clothing and accessories stores rose 1.6% in the month, while gasoline sales picked up 3.1%.

The update on consumer spending comes as economists are closely watching for any signs of weakness in the consumer amid the Fed's pivot to keep interest rates high for longer than expected.

GLENDALE, CALIFORNIA - DECEMBER 26: Shoppers gather in a Barnes & Noble store in the Americana at Brand shopping center on the day after Christmas on December 26, 2023 in Glendale, California. U.S. retail sales rose 3.1 percent year over year this holiday season, based on in-store and online purchases, according to Mastercard SpendingPulse. (Photo by Mario Tama/Getty Images)

Shoppers gather in a Barnes & Noble store in the Americana at Brand shopping center on the day after Christmas on December 26, 2023 in Glendale, California. (Photo by Mario Tama/Getty Images) (Mario Tama via Getty Images)

This is a breaking news post and will be updated with further context.

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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