U.S. retail sales rose 4.9% in April, extending gains to a third straight month even as inflation increased.
Larger tax refunds and stock-market gains likely fueled the pickup, with stronger spending by higher-income households offsetting pressure on lower-income consumers.
BMO's Sal Guatieri said the equity rally is supporting the upper end of a K-shaped expansion, while higher fuel, transportation and food costs are squeezing others.
The April gain follows another industry reading showing retail sales up 0.34% from March and 5.73% from a year earlier, pointing to still-resilient consumer demand.
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