It’s not all gloom and doom: April sales surprise

While you wouldn’t know it from first-quarter slump among department stores,  total retail sales posted their biggest increase in April in a year, allaying fears of a consumer falloff.  

 

Total retail sales rose 1.3% last month, fueled by strong automobile and online sales and rising  gasoline prices, the Commerce Department reported Friday. Excluding automobiles, gasoline stations and restaurants, sales rose 0.7% in April over March, according to the National Retail Federation, more than the 0.3% economists had predicted.    

 

“Today’s retail sales data suggests that consumer activity, the primary driver of economic activity, has not lost its momentum,” said NRF chief economist Jack Kleinhenz.  “This sets the stage for an upturn in economic growth in the second quarter and should be encouraging for Federal Reserve policymakers as they contemplate interest rate adjustments.” 

 

With the exception of setbacks in building materials and general merchandise, April’s  gains were broad-based including online, apparel and furniture.  The highest increase was in the online/direct mail sector,  where sales jumped 2.1%. 

 

Sales rose 0.9% at food and beverage stores; 0.7% at furniture stores; 1% at clothing and accessories stores; 0.9% at health and personal care stores; 0.3% at bars and restaurants; and 2.1% online.