Wall Street and retail business watchers were surprised this morning to learn that retail spending increased just 0.1 percent in April. Experts polled by The Wall Street Journal and Bloomberg News had expected an increase of 0.4 to 0.6 percent. The modest gain comes on the heels of a more dramatic 1.1 percent spike in March, a surge typical after a long winter hiatus. The report from the U.S. Commerce Department released this morning showed that excluding auto purchases, retail sales were essentially unchanged.
The Commerce Department report showed spending at furniture and electronics stores actually fell in last month. One of the few categories to show a notable gain was clothing, where sales were up 1.2 percent. Because consumer spending accounts for more than two-thirds of the U.S. economic output, “April's data could soften hopes for a second-quarter rebound in the economy,” reports The Wall Street Journal.