US retail sales rise by less than expected in April

American consumers last month resumed their outlays but at a slower than anticipated pace.

According to the Department of Commerce, retail sales volumes in the US grew at a month-on-month pace of 0.4% to reach $686.1bn.

Economists had penciled in a rise of 0.7%.

Excluding automobiles and parts, retail sales also increased by 0.4%.

Economists at Pantheon Macroeconomics were expecting a rise of 0.9% ex-autos.

Sales at motor vehicle and parts dealers grew by 0.4% versus March, at general merchandise stores by 0.9% and at non-store retailers by 1.2%.

Furniture sales dropped by 0.7% over the month, by 0.8% at gasoline stations and those of sporting goods by 3.3%.

American consumers last month resumed their outlays but at a slower than anticipated pace.

According to the Department of Commerce, retail sales volumes in the US grew at a month-on-month pace of 0.4% to reach $686.1bn.

Economists had penciled-in a rise of 0.7%.

Excluding automobiles, retail sales also increased by 0.4%, which was as expected.

The retail sales control group, which excludes autos, building materials and gasoline, increased by 0.7% (consensus: 0.3%).

Sales at motor vehicle and parts dealers grew by 0.4% versus March, at general merchandise stores by 0.9% and at non-store retailers by 1.2%.

Furniture sales dropped by 0.7% over the month, by 0.8% at gasoline stations and those of sporting goods by 3.3%.

Commenting on the latest retail sales figures, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said that the rise in retail sales excluding automobiles and petrol stations looked unsustainable.

Volatility in non-store sales aside, those at food service establishments and for general merchandise were at odds with other data.

Housing-related sales meanwhile lagged home sales, which cratered in 2022 and looked set for much steeper declines.

"The upshot here is that even flat sales in May and June seems a tall order; we are braced for outright declines, helping to tip the economy into a spring/summer recession."

Oren Klachkin, lead US economist at Oxford Economics, was more upbeat.

"'Control' retail sales, which feed into the GDP calculation, rose 0.7% rise in April, more than recouping March's decline.

"[...] Fortunately for Fed officials, they have another month's worth of economic data – including another CPI inflation and jobs report – released before the June FOMC meeting to decide whether to raise interest rates again. While inflation remains far above the 2% objective, we think Fed officials will stand pat next month and let tighter bank lending standards do some of their work for them."