Consumers lift spending on wide range of goods as gas prices fall
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — Americans boosted purchases in April on a wide range of retail goods, apparently taking advantage of lower gas prices.
Retail sales rose a seasonally adjusted 0.1% last month, the Commerce Department said Monday, in a sign that consumer spending might not have softened as much as expected. Economists polled by MarketWatch had forecast a 0.6% decline in retail sales.
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Sales at gas stations fell for the second straight month, sinking 4.7% in April to mark the biggest decline in more than five years. Yet retail spending actually climbed 0.7% in April if gasoline is excluded.
That’s good for consumers because it gives them more cash to spend on other goods and services instead of basic necessities. They appeared to use some of their savings at the gas pump to boost spending on autos, electronics, clothes and hobby items, among other things. They also increased spending at bars, restaurants and Internet shopping sites.
Aside from gas, the only categories to see a decline in spending were groceries, liquor and personal-care stores.
In March, meanwhile, the decline in retail sales was revised down to 0.5% from 0.4%. The increase in sales in February was revised up a tick to 1.1%.
Jeffry Bartash is a reporter for MarketWatch in Washington.
