U.S. consumers hold back, even as gas prices fall

Lower gas prices in April weren’t enough to embolden U.S. consumers to spend much more elsewhere. The Commerce Department reports this morning retail sales rose just 0.1% last month. After excluding gasoline station sales, consumers increased their spending on retail goods by just 0.2%. That followed two stronger months in February and March. Some economists say a mild winter led consumers to make purchases earlier in the year, effectively stealing sales from April. Still, there are positive signs in the report suggesting that tepid spending in April might prove to be a temporary lull. Americans spent more on autos, furniture and electronics, big purchases that help drive growth. They also spent more at restaurants and bars—generally a sign of confidence in the economy. Excluding autos, gas station sales and spending on building materials, so-called core retail sales increased 0.4%. One reason for the weakness is that gasoline prices have fallen sharply in the past month. The national average dropped to roughly $3.73 per gallon on Monday, roughly 17 cents cheaper than a month ago, according to a survey by AAA. That pulled sales at service stations down 0.3%. But consumers cut spending sharply at department stores and clothing stores, and sales dropped 1.8% at hardware stores.