High gas prices have not deterred Americans from spending at stores, shopping online, and dining out, retail sales data from the U.S. government showed Thursday.
American spending at retail stores, online shops, and restaurants rose by a solid 0.5 percent in April, the Bureau of Economic Analysis said. That matched the consensus forecast of economists surveyed by business news outlets. Compared with a year ago, spending is up an impressive 4.9 percent.
Spending at gas stations rose sharply due to soaring fuel prices. In April, drivers spent 2.9 percent more at gas stations than March, when spending jumped 13.7 percent from the previous month. Compared with a year ago, spending is up 20.9 percent.
But there are few signs that consumers are pulling back in spending in other parts of the retail economy. Spending at bars and restaurants, a highly discretionary category considered likely to see a decline if consumers are very worried or financially strained, rose by 0.6 percent in April. Compared with a year ago, Americans spent 2.7 percent more in eating and drinking spots.
Spending at electronics and appliance stores rose 1.4 percent for the month. Compared with a year earlier, spending is up 7.6 percent. The category that includes sporting goods stores and bookshops saw a 1.4 percent increase, bringing the annual gain to 13.4 percent. General merchandise stores took in 0.1 percent more consumer dollars, for a year-over-year increase of 3.1 percent.
Online spending grew 1.1 percent in April. From a year ago, it is up 11.1 percent. Sales climbed at home improvement and garden centers.
High gas prices may have weighed on auto sales. Motor vehicle and parts dealers experienced a 0.4 percent decline, largely reversing March’s 0.6 percent gain. For the year, sales are down 1.2 percent.
Sales declined at department stores and furniture stores, both on a monthly and a yearly basis. Sales at health and beauty retailers were flat for the month but still positive for the year. Sales at clothing stores fell in April but they are up a solid 5.5 percent from a year ago.
Excluding gas stations, sales rose 0.3 percent. Excluding gas stations and auto dealers, sales rose 0.5 percent. Excluding gas stations, auto dealers, and restaurants, sales were also up 0.5 percent. Excluding only auto dealers, sales were up 0.7 percent.
Sales in the so-called control group rose 0.5 percent, better than the 0.4 percent expected. The March estimate was revised higher to 0.8 percent from 0.7 percent. The control group is watched closely because it feeds into the calculation of GDP.
Objective measures of consumer health have lately clashed with subjective measures. The University of Michigan’s index of consumer sentiment hit an all-time low in April. Likely, the strength of the U.S. labor market—unemployment is very low and layoffs scarce—has supported an increased willingness to spend. Real incomes—adjusted for inflation—have stumbled recently, creating concerns that spending could come under pressure.
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