Strong sales at garden centers outweighs weakness at the mall
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) - U.S. retail sales rose a seasonally adjusted 0.4% to $366.4 billion in April, the seventh straight increase and the 12th gain in the past 13 months, led by strong sales at hardware stores and garden centers, the Commerce Department estimated Friday.
Excluding the 0.5% increase in auto sales, sales rose 0.4% to $303.5 billion.
The figures were stronger than expected, as economists surveyed by MarketWatch were looking for a 0.2% decline in overall sales and a 0.2% gain excluding autos. See our complete economic calendar and consensus forecast.
Adding to the upside surprise, sales in February and March were each revised higher by two-tenths of a percentage point. March's sales gain was boosted to 2.1% from 1.9%. Sales excluding autos rose 1.2% in March, revised up from 0.9% previously reported.
The figures are adjusted for seasonal factors, but not for price changes. Although the government's statisticians attempt to adjust for the timing of Easter, it's not an exact science. Most economists recommend averaging March and April to get a more-accurate view of where the economy is going. Sales rose an average of 1.3% in the two months.
Retail sales have been surprisingly strong, given the still-weak financial condition of American families, and so economists were looking for a bit of a pullback in April.
Consumers are still facing major challenges, including weak job growth, large levels of debt and slow income growth. But consumers also have many pent-up demands after two years of recession.
Compared with April 2009, sales were up 8.8%.
Sales were mixed across retail sectors in April, with a strong 6.9% gain at hardware stores and garden centers outweighing falling sales at mall-type stores. Sales at hardware stores had increased 7.8% in March. Read the full report on the government website.
April details
Motor vehicle sales rose 0.5% in April after rising 6.7% in March.
Furniture store sales fell 1.2%. Sales at electronics and appliances fell 0.4%
Building materials sales increased 6.9%.
Sales at the malls were lower. Sales at general merchandise stores fell 0.4% including a 1.5% drop at department stores. Sales at clothing stores fell 1%.
Sales at stores catering to leisure-time pursuits, such as hobbies, sports and reading, fell 1.9%.
Sales at health and personal care stores rose 0.9%.
Sales at food and beverage stores fell 0.5%. Sales at restaurants and bars rose 0.1%.
Sales at non-store outlets, such as catalogs and online stores, rose 0.2%.
