Retail sales growth slowed in April from March as higher gas cost leaves less room for nonessentials
NEW YORK (AP) — Shoppers cut spending in April higher gas prices fed by Iran war It meant less money for some non-essential things like clothing and furniture.
Retail sales rose 0.5% in April, slowing from a revised 1.6% growth level in March, according to Commerce Department data released Thursday. March marked the biggest one-month increase in retail spending in more than three years, largely due to rapidly rising gas prices.
Retail sales, excluding gas sales, rose 0.3% in April. That’s a slowdown compared to a 0.7% slowdown in March that excluded jobs at gas stations.
Shopper spending was moderate in some areas.
Sales at department stores fell 3.2%, while sales at furniture and home furnishings stores fell 2%. Construction material and garden equipment businesses saw a modest increase of 0.1%. However, online retailers saw a 1.1% increase, and electronics and appliance stores also reported a 1.4% sales increase.
The snapshot only offers a partial look at consumer spending and does not include things like travel and hotel stays. Only the services category (restaurants) increased by 0.6%.
Iran war The oil crisis, which started in late February, led to the closure of the Strait of Hormuz and the cutting off of one fifth of the world’s daily oil supply. The average price of a gallon of regular gasoline rose again to $4.53 on Thursday. That’s $1.35 more than it cost a year ago, according to the AAA motor club.
Economists believed that bigger tax refunds We will start spending at the beginning of the year. But rising gas prices since the start of the war are taking a larger share of American wages; leaving less money for things like eating out, new clothes, or other treats.
Still, U.S. employers have so far weathered the economic shock of the Iran war, adding a surprisingly strong 115,000 jobs last month.
But worrying data about rising prices has come in waves this week.
The Labor Department said Wednesday that the U.S. producer price index, which tracks inflation before it reaches consumers – increased by 1.4% April saw its biggest monthly gain in more than four years. The day before, the closely followed consumer price index increased by 3.8% Since April 2025 – the biggest annual increase in more than three years. These price increases are also largely due to increasing energy prices; It started showing up in everything from plane tickets to baggage fees to soap and toothpaste.
A clearer picture of how inflation is affecting Americans may emerge next week when major U.S. retailers such as Walmart and Target begin reporting quarterly financial results.
