Retail sales slowed in April, the Associated Press reported, largely due to higher gas prices driven by the Iran war.
Economists noted, however, that consumer spending is still healthy, propped up by generous income tax refunds. Still, they said spending may decline as those benefits dissipate and shoppers contend with rising fuel prices.
Retail sales climbed 0.5% in April, a slowdown from March’s revised 1.6%, according to the Commerce Department.
Excluding gas sales, retail sales in April were up 0.3%. That’s a slowdown from the 0.7% pace, excluding business from gas stations, in March.
In April, sales at gas stations rose 2.8%, in comparison to a 20.9% hike in March, attributed to the spike in gas prices.
Sales at department stores fell 3.2%, while sales at furniture and home furnishings stores slipped 2%. Business at building material and garden equipment had a modest 0.1% increase. But online retailers saw a 1.1% increase, and electronics and appliance stores posted a 1.4% sales gain.
