Overview

• Retail sales increased by a modest 0.1% in April, following a 1.7% surge in March as consumers rushed to make purchases ahead of anticipated tariffs.
• Spending at restaurants and bars rose 1.2% in April, while sales at garden centers and home improvement outlets grew by 0.8%.
• Declines were observed in gas station sales (down 0.5%), car dealerships (down 0.1%), and discretionary categories such as clothing and sporting goods stores.
• Economists warn that tariff-induced price increases, higher borrowing costs, and slowing employment gains could further dampen consumer spending in the coming months.
• Retail sales remain a key measure of the economic impact of tariffs, with April’s data highlighting both short-term resilience and emerging signs of consumer fatigue.