Sales down 10.1% in the past year as recession squeezes harder
WASHINGTON (MarketWatch) - U.S. consumers pulled back again in April, as retail sales dropped a seasonally adjusted 0.4%, the eighth decline in the past 10 months, the Commerce Department estimated Wednesday.
Retail sales were 10.1% lower than in April 2008, with about a third of the decline stemming from lower gasoline prices. Sales in the first four months of the year were down 10% compared with the same period a year ago.
Sales were mixed across types of stores in April. Excluding the 0.2% increase in autos, sales fell 0.5%.
Economists surveyed by MarketWatch were forecasting a small rise in sales in April, figuring that the later-than-usual Easter holiday would boost sales in April despite efforts by the government statisticians to adjust for the timing of the holiday.
Sales in March were revised lower to a 1.3% decline from 1.2% reported earlier.
Stock futures extended their fall, and bond prices rose, after the release of the data.
Since July, sales have risen only in January and February, helped by post-holiday bargains and higher incomes for those who received tax refunds or cost-of-living increases.
The decline in sales in March and April puts second-quarter spending on a downward slope after consumer spending grew at a 2.2% annual rate in the first quarter. Most economists expect consumer spending to be a drag on economic growth for the next quarter or two, at least.
In a separate report, the Labor Department said prices of imports rose 1.6% in April, but nonetheless are down a record 16.3% in the past year, largely because of crude oil prices.
Details of retail sales
Gasoline sales fell 2.3% as prices fell on a seasonally adjusted basis. Excluding gas, sales fell 0.2% in April.
Among all types of stores, only health-care stores had higher sales this April than last April.
Sales of motor vehicles and parts rose 0.2%, but were down 20.7% in the past year.
Sales at electronics and appliances stores fell 2.8% and are now down 12% in the past year.
Sales at furniture stores fell 0.5%. Sales at building supply stores rose 0.3%, the biggest increase since June.
Sales of nondurable goods were generally weak.
Sales at general merchandise stores fell 0.1%, including a 0.2% drop at department stores.
Sales at clothing stores fell 0.5%. Sales at stores catering to leisure-time activities, such as reading and music, rose 0.3%.
Sales at health and personal care stores rose 0.4%.
Sales at food stores fell 1%. Sales at restaurants and bars rose 0.2%.
