Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Retail Sales Unexpectedly Fall in April on Autos

Published 05/15/2019, 09:24 AM
Updated 05/15/2019, 09:30 AM
© Bloomberg. A customer looks in the trunk of a Honda Motor Co. vehicle displayed for sale at Paragon Honda dealership in the Queens borough of New York, U.S., on Friday, Nov. 9, 2012.

© Bloomberg. A customer looks in the trunk of a Honda Motor Co. vehicle displayed for sale at Paragon Honda dealership in the Queens borough of New York, U.S., on Friday, Nov. 9, 2012.

(Bloomberg) -- U.S. retail sales unexpectedly declined in April for the second time in three months, weighed down by soft sales of autos and building materials and suggesting consumer spending will remain subdued this quarter.

The value of overall sales declined 0.2% after a 1.7% increase the prior month that was the strongest gain since 2017, according to Commerce Department figures released Wednesday. That compared with the median forecast in Bloomberg’s survey calling for a 0.2% rise.

Sales in the “control group” subset, which some analysts view as a cleaner gauge of underlying consumer demand, were unchanged from the prior month, below projections for a 0.3% gain. The measure excludes food services, car dealers, building-materials stores and gasoline stations.

The figures, also reflecting weakness in the category that includes online sales, suggest spending remains soft following the weakest quarterly increase in a year. That could bolster pressure from President Donald Trump and financial markets to cut borrowing costs amid unexpectedly low inflation, though Federal Reserve policy makers have pledged patience as steady job and income gains should support purchases in coming months.

Retailers may be poised to take a further hit should Trump follow through on his threat to impose tariffs of 25% on almost all remaining Chinese imports, which would likely force Americans to absorb higher prices. Unlike the previous targets of U.S. levies, the majority of this tranche is consumer goods.

The report showed seven of 13 major retail categories decreased, with other down sectors including clothing, health and personal care, and electronics and appliances. Categories with increases included general merchandise, food and beverage stores, and restaurants and bars.

Sales at automobile dealers fell 1.1%, the most since January, after increasing 3.2% in the previous month. Industry data from Wards Automotive Group previously showed unit sales retreated in April, touching the lowest level since 2017.

Filling-station receipts increased 1.8%, the report showed, as oil prices rallied. The figures aren’t adjusted for price changes, so higher retail sales in the category could reflect higher gasoline costs, sales, or both.

Excluding automobiles and gasoline, retail sales fell 0.2% following a 1.1% increase.

Get More

  • Estimates in the Bloomberg survey for retail sales ranged from a 0.1% decline to a 1.3% gain.
  • Nonstore retailers -- which includes electronic shopping and mail orders -- fell 0.2%, the most since December.
  • The retail-sales data capture just under half of all household purchases and tend to be volatile. April personal-spending figures, which detail consumer purchases, will offer a fuller picture of U.S. consumer spending at the end of the month.

(Corrects final bullet to replace word ‘March’ with ‘April’.)

© Bloomberg. A customer looks in the trunk of a Honda Motor Co. vehicle displayed for sale at Paragon Honda dealership in the Queens borough of New York, U.S., on Friday, Nov. 9, 2012.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.