Retail sales surged to a record high for the second straight month in April, in part due to a near-record price hike for gasoline.
Retailers sold $32.8 billion worth of goods and services, up 1.7 percent from March, identical to the increase the month before. These back-to-back gains were the strongest monthly advances since a 1.8 percent increase recorded in March 2004.
April's robust sales conditions followed the strongest quarterly gain in four year. Excluding sales by dealers of new, used and recreational vehicles and auto parts, retail sales rose 1.9 percent fromMarch, continuing a string of sales increases that started in December 2005.
Once prices are taken into account, total retail sales in constant dollars grew by a smaller but nevertheless robust 1.2 percent in April.
While the effect of higher gasoline prices was significant (they rose 13.5 percent in April, the second highest increase in 23 years), these were partially offset by lower prices at other stores, such as clothing and accessories stores, general merchandise stores, and miscellaneous retailers.
Consumers spent more on clothing and accessories in April than in the previous month, as sales in these stores increased 0.9 percent. Sales were up 2.2 percent in shoe, clothing accessories and jewellery stores.
This sector has been experiencing rapid growth since July last year, recording only two marginal declines in sales over the 10-month period.
The sales decline home furnishing stores (-2.4 percent), computer and software stores (-4.0 percent) and home electronics and appliance stores (-0.2 percent) all experienced decreases of varying magnitudes in April.
Sales in this sector have generally been growing since 2004 in the wake of a strong housing market.
marketing@alchempro.com
