In April, American consumers increased their spending in various sectors such as restaurants, electronics, gardening, household goods, and furniture retailers.
Spending at restaurants and bars climbed by 1.2% last month. This indicates that U.S. consumers aren’t pulling back on discretionary spending, even though analysts on Wall Street have expressed concerns that tariffs might impact economic growth. Earlier this week, the Labor Bureau reported that the consumer price index for dining out went up by 0.5%.
In March, spending at food and drink establishments had a notable increase of 3%, according to a report from the Commerce Department released on Wednesday. Year-over-year, spending has surged by 7.8%, significantly outpacing the 3.9% rise in dining prices reported this week by the Labor Bureau.
Sales at appliance and furniture stores both rose by 0.3%. Furniture stores saw a bigger rise of 7.8% compared to the same period last year. Appliance and electronics sales also went up by 0.3% from April 2024. Additionally, garden centers and home improvement outlets experienced a sharp increase of 0.8%, up 3.2% compared to last year.
There were indications that consumer spending had bounced back after a surge before the March holiday. Auto dealer sales dipped by 0.1% in April following a robust increase of 5.5% the previous month. Still, sales rose by 9.8% compared to the same time last year. Although new car prices remained steady for the month, the drop in used car prices suggests that the lower sales figures might indicate falling prices rather than a reduction in the number of cars sold.
Retail sales across all categories grew by 0.1% in April. When excluding cars and gas stations, sales increased by 0.2%. March profits were revised upward to 0.5% from the previously estimated 0.4%.
Gas station sales decreased by 0.5%, likely due to a significant drop in gas prices. Likewise, spending at grocery stores declined by 0.1%, aligning with a 0.1% fall in food prices.
Sales also declined in health and beauty stores and department stores. Clothing stores saw a 0.4% decrease, which might be related to a 0.2% drop in apparel prices. Categories like sports goods, bookstores, and hobby shops partially reversed their 3.8% increase in March, experiencing a sharp decline. However, compared to a year ago, sales still rose by 3.5%.
