US retail sales grow 0.9% in April

• March retail sales gain raised to 1.4% from 0.5%

US retail sales rose strongly in April with automobile sales leading the way along with increased spending at restaurants.

Retail sales rose 0.9% last month, reflecting both strong demand and higher prices, which was in line with economists’ expectations. Sales rose 8.2% on a year-on-year basis.

The increase in sales in March, meanwhile, was revised to 1.4% from an original 0.7%, the government reported Tuesday.

Rising inflation could be a hindrance for consumer spending, potentially slowing the economy. Consumer spending accounts for about 70% of US economic activity.

April’s report shows that Americans are still spending enough to keep the economy growing.

Category-wise statistics 

Last month, sales rose in nine of the thirteen retail categories, headed by the automobiles and auto parts sector. These sales grew 2.2% from the previous month.

Electronics and appliance store sales grew 1% while food and beverage retail sales declined 0.2%.

Clothing shop sales grew 0.8%, while sales at gas stations slid 2.7% in April after prices at the pump fell. They had surged in March following the Russian invasion of Ukraine. 

The report's lone service-oriented category, restaurant and bar receipts, grew 2%.

Furniture shop sales fell 5.5 percent rose 0.7%.

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Source: Commerce Department