ARLINGTON, Va.—Total retail sales continued to rise in April, increasing 0.3%.
March's growth was revised up to 0.8% and February's sales were revised from a previous decrease to show no growth. NAFCU Vice President of Research and Chief Economist Curt Long said "the report provides evidence of building momentum for consumers and the economy."
"While first quarter GDP growth disappointed, second quarter estimates are generally in the neighborhood of 3%, which is consistent with the pace of growth over the final three quarters of 2017," Long said in a NAFCU Macro Data Flash report. "Tax cuts are providing households with greater disposable income, and wage growth is showing modest improvements."
Long said rising gas prices are having a slight drag on consumers, but "help to support investment in the shale industry."
"Political and trade risks notwithstanding, the economic picture is starting to look much like last year, with a lackluster start followed by a solid final three quarters," Long added.
Core retail sales (excluding light vehicles and gasoline) increased 0.3% in April; auto and gas sales improved 0.3% during the month.
Year-over-year growth in retail sales was 4.7% in April, down from 4.9% in March. Core retail sales increased 4% from a year ago, while auto and gas sales rose 6.3% from last year.
Results among the major retail segments were generally positive in April. Clothing stores reported a sales increase of 1.4%, followed by miscellaneous retailers (+0.9%), gas stations and furniture stores (both +0.8%). Sales at healthcare stores decreased by 0.4%, as did sales at restaurants (-0.3%) and electronics and appliance stores (-0.1%), Long said.