Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Retail Sales Stagnate in April, But Offset by Upward Revision to March Data

Economic Indicators May 14, 2021 08:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Fears of the U.S. economy running hot receded on Friday after new data showed a slowdown in consumer spending in April.

Retail sales were flat on the month, falling short of expectations of a 1% gain. However, the monthly gain for March was revised up by a full percentage point to 10.7%., leaving aggregate spending roughly where economists expected it to be over the two months.

Core retail sales fell 0.8% on the month, rather than rising 0.7% as expected. Here too, the March figure was revised upward to a gain of 9.0% from an initial estimate of 8.4%.

James Knightley. chief international economist with ING, said via Twitter that the staged reopening of the economy also meant that spending was draining away from goods to services. 

"Re-opening means increased options for spending money, meaning a movement away from “things” to “experiences” that aren’t measured within retail sales," Knightley said.

The figures once again testified to idiosyncracies in consumer spending patterns as the economy emerges slowly and unevenly from the Covid-19 pandemic: sales at auto dealerships rose 3.1% on the month, corroborating the robust demand for cars that had also been evident in the sharp rise in prices for vehicles in April's inflation report earlier in the week.

By contrast, sales of apparel fell 5.1% and sales at hobby and sporting stores fell 3.6% on the month, having surged in March. 

March's data had been skewed by the effect of stimulus checks arriving at households across the country which, coupled with the start of economic reopening, had resulted in an explosion in overall spending.

"It was inevitable that there would be some declines in spending in April given that the vast majority of the $1,400 checks had already been paid out the previous month, but the details show sales in most categories reversing only part of their earlier surge," said Andrew Hunter, senior U.S. economist with Capital Economics in a note to clients."

Hunter noted that spending on food and drink services rose 3% on the month, after surging 13.5% in March as bars and restaurants across the country reopened in growing numbers. It's now only 2% below its pre-pandemic peak, he argued.

 

Retail Sales Stagnate in April, But Offset by Upward Revision to March Data
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (14)
Todd Gray
Todd Gray May 15, 2021 9:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it's called fudging the numbers. it's a crime in most situations. legal when government does it.
St Af
St Af May 14, 2021 9:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
F.R.A.U.D. is a 5 letter word. But, it sounds like a 4 letter word.  SHAM(E).
Jon Bal
Jon Bal May 14, 2021 9:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
seems when prices go up demand goes down..we should study this phenomenon
KAATEMA ATOM
KAATEMA ATOM May 14, 2021 9:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Buying and selling
Jermaine .A
Jermaine .A May 14, 2021 9:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
economic activity down while prices are skyrocketing, hmmmm? Sounds like STAGFLATION!
Connecticut Yankee
A_Jaundiced_Eye May 14, 2021 9:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just proves the old joke: "There are 3 types of mistruths: Lies, ****Lies, and Statistics."
Mitchel Pioneer
Mitchel Pioneer May 14, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As predicted, the rest of Wednesday's loss will magically vanish from the system during fraudulent Friday.  Just can't have a loss on a Friday in the US Ponzi Scheme, can we?  "Investors" come out of the woodwork to buy stocks at the most grossly overvalued levels in history, just to hold over the weekend.  Welcome to the greatest investment farce in the world.
bull flag
bull flag May 14, 2021 9:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
mon, tues, and wed were blood baths. the market is for buying and selling stocks. feels appropriate to see some green after the indiscrimate sell off of the first half of the week
Ominous Owl
Ominous Owl May 14, 2021 8:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Now, we can sleep thinking there is no raging inflation. Reduce consumer demands & fan down the inflationary pressures. Nice work indeed.
Olanrewaju Stephen O Olanrewaju
Olanrewaju Stephen O Olanrewaju May 14, 2021 8:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how do invest in cryptocurrency?im in nigeria.
Rose Yane
Rose Yane May 14, 2021 8:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I want to but I dont know. im in NY
semira Robert
semira Robert May 14, 2021 8:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
simple you follow the investment company in your country
Dionte Edwards
Dionte Edwards May 14, 2021 8:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trash
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email