US retail sales show modest growth in April despite tariffs

Shoppers remained engaged in April despite ongoing concerns over tariffs on imported merchandise, according to National Retail Federation (NRF) chief economist Jack Kleinhenz. He noted that while tariffs affected spending decisions, consumer spending remains steady, supported by positive job and wage data, as well as lower energy prices.

“Consumers are still spending despite widespread pessimism fuelled by rising tariffs,” Kleinhenz said. “While tariffs may have weighed on spending decisions, growth is coming at a moderate pace and consumer spending remains steady, reflecting a resilient economy. The momentum and willingness to spend is being supported by positive data on jobs and wages along with lower energy prices.”

April’s core retail sales as defined by NRF — based on the census data but excluding automobile dealers, gasoline stations and restaurants — were down 0.1 per cent seasonally adjusted month-over-month but up 5.1 per cent unadjusted year-over-year. Core sales were up 3.4 per cent year-over-year on a three-month moving average and up 3.8 per cent for the first four months of the year, NRF said in a press release.

Last week, the CNBC/NRF Retail Monitor, powered by Affinity Solutions, reported that core retail sales were up 0.9 per cent seasonally adjusted month-over-month in April and were up 7.11 per cent unadjusted year-over-year. That compared with an increase of 0.4 per cent month-over-month and 5.07 per cent year-over-year in March.

As the leading authority and voice for the retail industry, NRF provides data on retail sales each month and also forecasts annual retail sales and spending for key periods such as the holiday season each year.

ALCHEMPro News Desk (RR)