ARLINGTON, Va.—Total retail sales decreased 0.2% in April after sturdy gains in March. NAFCU's Curt Long noted that despite a strong labor market, economic growth will be modest in the coming months as "consumer spending has been choppy this year as a result of the government shutdown, ongoing trade tensions, and lower tax refunds."
"Consumer sentiment recovered after a one-month drop during the shutdown, but recent stock market volatility suggests that trade tensions are rattling nerves," said Long, NAFCU's vice president of research and chief economist, in a NAFCU Macro Data Flash report. "The labor market is still strong, and wage growth is comfortably above inflation. That should be enough to keep the recovery going, but economic growth will be more modest than in recent years."
Year-over-year growth in retail sales was 3.1% in April, which was down from 3.7% in March. Core retail sales increased 3.2% from a year ago, and auto and gas sales grew 3%.
Core retail sales (excluding light vehicles and gasoline) decreased 0.2% in April. Auto and gas sales decreased 0.3% during the month, Long noted.