EmailRetail sales increased 0.1% in April, down from a downwardly revised 0.7% (from 0.8%) increase in March. The Briefing.com consensus expected retail sales to increase 0.2%. Excluding motor vehicles, sales also increased 0.1% in April after rising 0.8% in March. The consensus expected ex-auto sales to increase 0.2%. Even though growth levels were down from March, the details of the report support improving trends in consumption.
Most of the April weakness was due to pullbacks in spending that came from temporary distortions in spending patterns caused by warmer-than-normal temperatures during the winter (building material and supply dealers fell 1.8% after rising 2.7% in March) and a decline in gasoline prices (gasoline stations spending declined 0.3% after increasing 1.0% in March). Core retail sales -- which exclude the highly volatile motor vehicle dealers, building materials and supplies dealers, and gasoline stations -- increased a healthy 0.4%. Core retail sales were buoyed by a 0.7% increase at furniture and home furnishing stores and a 1.1% gain in nonstore retailers. Clothing stores sales fell 0.7%, marking the second consecutive monthly decline.
