U.S. shoppers apparently adopted an avoid-the-rush attitude in terms of their spending in March.
Trying to beat the expected price hikes that could be brought on by U.S. tariff policy, consumers spent a little more at retail stores in March.
Sales at retail stores and restaurants rose just 0.1% in April from March, the Commerce Department said this week. That’s down from the 1.7% gain the previous month, which The Associated Press reported was a reflection of a surge in car sales as consumers sought to get ahead of President Trump’s 25% duty on auto imports that went into effect this month.
Meanwhile, Americans are increasingly gloomy about the economy’s prospects, according to sentiment surveys, but it’s hard to tell whether that will translate into reduced spending and slower economic growth.
In April, sales were flat or down for many retailers, dropping 2.5% at sporting goods stores, which saw prices jump last month, according to the government’s earlier inflation report. Sales dropped 0.4% at clothing stores, while they ticked down 0.2% at health and personal care stores and slipped 0.1% at auto dealers, the AP reported.
Gas station sales dropped 0.5%, even as prices declined 0.1%. The figures aren’t adjusted for price changes.
The report wasn’t all gloom-and-doom; sales at restaurants and bars jumped 1.2% last month, a sign many consumers boosted their discretionary spending.
And sales at home and garden centers jumped 0.8%, the biggest gain since 2022, which suggests Americans are pursuing more home renovations as elevated mortgage rates cooled home sales.
Retailers still face a lot of uncertainty around tariffs and how shoppers will react to higher prices after several years of sharply rising costs.
A government report, released Tuesday, showed that inflation cooled for the third straight month in April, though economists and many business owners expect inflation will climb by this summer.
