Retail sales in the U.S. saw a modest increase in the month of April, according to a report released by the Commerce Department on Tuesday, with the increase in sales matching economist estimates.
The report showed that retail sales edged up by 0.1 percent in April following a revised 0.7 percent increase in March. Economists had expected sales to increase by 0.1 percent compared to the 0.8 percent growth originally reported for the previous month.
While sales rose for the fourth consecutive month, the modest increase marked the slowest pace of growth of the year. The relatively weak growth came as warmer than usual weather and an early Easter pulled sales forward.
The modest increase in retail sales was partly due to a 1.1 percent increase in sales by non-store retailers. Sales by furniture and home furnishing stores, health and personal care stores, and motor vehicle and parts dealers also showed notable increases.
Excluding the 0.5 percent increase in sales by motor vehicle and parts dealers, retail sales still rose by 0.1 percent in April compared to a 0.8 percent increase in the previous month.
A 1.8 percent drop in sales by building materials, garden equipment & supplies dealers helped to limit the upside for overall sales, with the sharp decline coming after sales in the sector jumped 2.7 percent in March amid the warmer than ordinary weather.
Sales by gas stations also edged down by 0.3 percent in April compared to a 1.0 percent increase in the previous month. The drop reflected a decrease in gas prices.
Core sales, which exclude gas, autos, and building materials, rose by 0.4 percent in April, exceeding estimates for a 0.3 percent increase.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "Overall, consumer spending looks to have started the second quarter on a solid footing."
In related news, the Labor Department released a separate report showing that consumer prices came in unchanged in April, in line with economist estimates. Core prices, which exclude food and energy prices, rose by 0.2 percent, also matching expectations.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.