U.S. consumers spent slightly more at retail stores last month after ramping up their shopping in March to get ahead of tariffs.
Sales at retail stores and restaurants rose just 0.1% in April from March, the Commerce Department said Thursday. That is much lower than the previous month’s 1.7% gain, which reflected a surge in car sales as consumers sought to get ahead of President Trump’s 25% duty on auto imports that went into effect this month.
Last month’s tiny increase after the March surge makes it harder to get a clear read on consumer spending trends and reflects the ongoing turmoil and uncertainty in the economy in the wake of Trump’s stop-and-go tariff policies. Many publicly traded companies have withdrawn or held off on the traditional practice of forecasting their revenues and earnings for the rest of this year because the economic landscape has become so chaotic.
Meanwhile, Americans are increasingly gloomy about the economy’s prospects, according to sentiment surveys, but it’s not yet evident whether that will translate into reduced spending and slower economic growth.
In April, sales were flat or down for many retailers: They plunged 2.5% at sporting goods stores, which saw prices jump last month, according to the government’s inflation report earlier this week. Sales dropped 0.4% at clothing stores, while they ticked down 0.2% at health and personal care stores and slipped 0.1% at auto dealers.
Gas station sales dropped 0.5%, even as prices declined 0.1%. The figures aren’t adjusted for price changes.
Still, there were signs that at least some Americans were willing to spend. Sales at restaurants and bars jumped a healthy 1.2% last month, a sign many consumers boosted their discretionary spending.
