Worries for American GDP as retail sales stagnate in April
SALES at US retailers barely rose in April as the boost from an unseasonably warm winter faded, official data showed yesterday, pointing to some loss of momentum in consumer spending early in the second quarter.
Commerce department figures recorded a 0.1 per cent rise in the month – the smallest gain since December, held back by a decline in receipts from building materials and clothing stores.
But details of the report showed underlying strength in demand, while other reports showed a strong rebound in manufacturing activity in New York State this month and sentiment among home builders at a five year-high.
The New York Federal Reserve said its Empire State general business conditions index jumped to 17.09 in May from 6.56 in April, outpacing economists’ expectations of 8.50. Separately, the National Association of Home Builders housing market index rose to 29 from 24 in April, topping analysts’ forecasts of 26.
In addition retreating gasoline prices, which put a lid on inflation pressures last month, should put more money in consumers’ pockets and boost spending in the months ahead.