Shoppers pulled back on spending in April as higher gas prices fueled by the Iran war meant less money left over for some nonessentials like clothing and furniture.
Retail sales rose 0.5% in April, a slowdown from the revised growth level of 1.6% in March, according to Commerce Department data released Thursday. March marked the largest one-month increase in retail spending in more than three years, largely because gas prices spiked higher rapidly.
Excluding gas sales, retail sales in April were up 0.3%. That’s a slowdown from the 0.7% pace, excluding business from gas stations, in March.
Sales at department stores fell 3.2%, while sales at furniture and home furnishings stores slipped 2%. Meanwhile, material and garden equipment saw a modest 0.1% increase. But online retailers saw a 1.1% increase and electronics and appliance stores posted a 1.4% sales gain.
The snapshot offers only a partial look at consumer spending and doesn’t include things like travel and hotel stays. The lone services category—restaurants—registered a 0.6% increase.
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