U.S. Retail Sales Rise 0.5% in April as Consumers Keep Spending Despite Iran-Driven Gas Surge
Updated
Updated · The New York Times · May 14
U.S. Retail Sales Rise 0.5% in April as Consumers Keep Spending Despite Iran-Driven Gas Surge
10 articles · Updated · The New York Times · May 14
April retail sales rose 0.5% from March, with sales excluding cars and gasoline also up 0.5%, showing consumers kept buying beyond fuel-related price effects.
Discretionary categories including electronics posted gains, leading Jefferies economist Thomas Simons to call the consumer "fairly bulletproof" despite weak sentiment and squeezed real pay.
That resilience has been supported for years by higher-income households, even through elevated inflation, higher interest rates and tariff-related cost increases.
Recent data still points to mounting strain as the war in Iran keeps gasoline prices high, raising questions about how long consumer spending can hold up.
With real sales falling and debt rising, is the resilient American consumer finally reaching a breaking point?
Why are Americans spending more yet feeling worse about the economy than at any time since the 1950s?
Is the US economy heading for a 1970s-style inflation crisis despite having a strong job market?