Another view ...
... Retail sales increase 0.1% in April; March data revised up
Core retail sales decrease 0.2%; spending still holding up
Producer prices drop 0.5%, travel category leads plunge in services
U.S. retail sales growth slowed in April as the boost from households front-loading motor vehicle purchases ahead of tariffs faded and consumers pulled back on spending elsewhere against the backdrop of an uncertain economic outlook.
The apprehension over the economy's prospects, sparked by President Donald Trump's on-again, off-again tariffs policy, was underscored by retail giant Walmart which on Thursday joined the list of companies from airlines to auto manufacturers that have either withdrawn or refrained from giving financial guidance.
Wholesale prices for services like airline tickets and hotel rooms fell last month, other data showed, also flagging softening demand, which does not bode well for an anticipated rebound in growth this quarter after the economy contracted in the January-March period for the first time in three years.
"We are now witnessing the first-order effects of tariffs on the economy through reduced spending," said Tuan Nguyen, a U.S. economist at RSM US. "While a recession is no longer our base case over the next 12 months due to the recent reduction in tariffs, the likelihood has increased that the U.S. economy will experience several quarters of sluggish growth."
Retail sales edged up 0.1% last month after an upwardly revised 1.7% surge in March, the Commerce Department's Census Bureau said. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would be unchanged after a previously reported 1.5% jump in March. Estimates ranged from a 0.6% decline to a 0.4% gain.
Retail sales have see-sawed this year amid Trump's announcements of import duties. Though Washington and Beijing struck a 90-day truce in their trade war last weekend, slashing tariffs on imports, uncertainty remained over what happens thereafter.
Sales at auto dealerships dipped 0.1% after accelerating by 5.5% in March. Receipts at sporting goods, hobby and musical instrument stores slumped 2.5%, while receipts at miscellaneous store retailers fell 2.1%. ...
