U.S. retail sales unexpectedly remained flat in April, missing Wall Street expectations

U.S. retail sales were unexpectedly flat in April as higher gasoline prices drove spending away from other goods, suggesting consumer spending is losing steam.

U.S. retail sales were unexpectedly flat in April as higher gasoline prices drove spending away from other goods, suggesting consumer spending is losing steam.
The U.S. Department of Commerce\’s Census Bureau said on Wednesday (15th) that retail sales were flat in April, following a downward revision to growth of 0.6% in March.
Retail sales rose 0.7% in preliminary March.
Economists had forecast retail sales of goods would rise 0.4% in April, not adjusted for inflation.
Sales in April were up 3.0% from a year earlier.
Amid rising prices, consumers are focusing on necessities and buying less luxuries.
But sales remained strong as a strong labor market helped households cope with a high-inflation environment.
A report last week by the Bank of America Research Institute found that spending growth among low-income households in April was still higher than that among high-income households but warned that \”the apparent cooling of the labor market warrants close attention.\”
It also cited rising property insurance costs as a \”significant headwind for consumers.\”
Core sales, which exclude automobiles, gasoline, building materials and food services, fell 0.3% last month while core retail sales growth in March was revised downward to 1.0%; from 1.1%.
Core retail sales correlate most closely with consumer spending within gross domestic product (GDP).
In the first quarter, consumer spending grew at an annual rate of 2.5%, contributing to economic growth of 1.6%.

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