A retail sales shopper in the U.S. (Photo: Reuters)
The Commerce Department said on Friday U.S. retail sales in April increased 1.3%, which is the biggest gain posted since March 2015 (in a year). Retail sales for the prior month of March were revised up to show a slightly less decline of 0.3% instead of the initially reported 0.4%.
Behind the numbers, Americans increased their purchases of automobiles and a wide range of other goods, indicating the economy may be regaining momentum after growth almost stalled in the first quarter. Still, the U.S. economy cannot thrive and those working in it cannot prosper on an abysmal average of 2% growth in the gross domestic product.
Excluding automobiles, gasoline, building materials and food services, retail sales increased by just 0.9% last month after an upwardly revised 0.2% gain in March. These so-called core retail sales actually correspond most closely with the consumer spending component of gross domestic product, a gut-check reminding analysts not to be overly too optimistic going forward.
But the report did slightly top the median forecast, as economists polled by Reuters had expected retail sales to gain 0.8% and core retail sales to increase 0.3% last month. The economy expanded at just 1.4% in the fourth quarter, weighted down by stagnant wages.
In April, auto sales rose 3.2%, which is the largest increase since March 2015 after falling 3.2% in March. Receipts at service stations increased 2.2%, largely the result of recent increases in gasoline prices.
Receipts at clothing stores gained 1.0%, which is the largest increase since May 2015. Online retail sales, an increasingly larger share of consumerism, jumped 2.1%. That’s the single biggest monthly gain since June 2014. Electronics and appliance outlets saw increases of 0.5%, while receipts at sporting goods and hobby stores rose 0.2%. Sales at restaurants and bars rose 0.3%.
However, receipts at building materials and garden equipment stores fell 1.0% last month, representing the largest decline since August.
