Rising gas prices linked to the Iran war have left households with less money for nonessential purchases like clothing and furniture
US shoppers slowed their spending in April, according to Commerce Department retail sales data. Sales rose only 0.5%, down from a revised 1.6% jump in March.
Rising gas prices linked to the Iran war have left households with less money for nonessential purchases, such as clothing and furniture.
Department store sales fell 3.2%, while furniture and home furnishing sales slipped 2%. However, online retailers, electronics stores, and restaurants posted gains.
Excluding gas stations, April retail sales increased just 0.3%.
Higher fuel costs continue to pressure consumers after the Iran war disrupted oil supplies through the Strait of Hormuz. AAA said the average US gasoline price climbed to $4.53 per gallon, up $1.35 from a year earlier.
Economists said larger tax refunds temporarily supported spending, but they expect weaker consumer demand in the coming months as refunds fade and fuel costs remain high. Inflation also accelerated in April, raising concerns that households may cut back further on discretionary purchases.