ARLINGTON, Va.—Total retail sales remained stable in April following March's upwardly revised spike of 10.7%. Of note, the February number was downwardly revised to a 2.9% slide.
"Retail sales disappointed somewhat in April showing flat growth, but that follows a blowout March figure that was revised up from its initial reading," highlighted NAFCU Chief Economist and Vice President of Research Curt Long. "Sales remain at a high level due to abundant cash, stimulus checks, and the general economic reopening."
Some of the apparent weakness in April likely reflects the shift from spending on goods back to services consumption," added Long. "The retail sales report essentially reflects the former category."
Year-over-year, sales were up 51.2% in April, which is up from +27.9% in March. Control group sales were up 38.3% from a year ago.
Results within sectors were mixed during the month. The food service sector rose 3%, followed by motor vehicle and parts dealers (+2.9%), and electronics & appliances (+1.2%). The largest drops were clothing and accessories stores (-5.1%), general merchandisers (-4.9%), and sporting goods stores (-3.6%). Within sectors, department stores fell (-8.4%) while grocery stores rose slightly (+0.1%).
"NAFCU expects retail sales to remain strong at a high level through the year, but growth may be modest due to the continued handoff from the goods sector to the services sector," Long concluded.