April Retail Sales - Meeting Expectations

US retail sales rose in line with expectations for the month of April highlighting continued consumer strength. In nominal terms retail spending was up 4.9% year-over-year and 0.5% compared to the high bar set in March. After adjusting for inflation, spending rose 1.1% year-over-year and was down -0.1% month-over-month. Spending at gasoline stations drove the large increase in spending, however a number of other businesses saw double digit year-over-year growth in sales. The war in Iran continues to have an effect on consumer spending decisions, driving up sales at gas stations and increasing inflationary pressures.

• Real (inflation adjusted) retail sales rose 1.1% year-over-year.  In April, retail sales grew 4.9% nominally netting real growth of 1.1% after adjusting for the unusually high 3.8% inflation.  Higher spending at gasoline stations (+20.9%), brick-and-mortar retailers (+12.8%), and online (+11.1%) contributed to the strong month’s spending.  Just six of the thirteen categories advanced in real terms.
• Real (inflation adjusted) retail sales shrank -0.1% month-over-month.  In April, nominal retail sales levels increased 0.5% compared to March netting real growth of -0.1% after adjusting for 0.6% inflation.  Nominal growth was driven by stronger spending at gasoline stations (+2.8%),  and online (+1.1%).  Only five of thirteen categories advanced in real terms.