Sales at U.S. retail. rebounded by 0.4% in April largely due to strong demand for new cars and higher consumer spending online. This led to indications that the economy remained strong amid fears of a wider slowdown in consumer spending.
Waima said this figure was below target as sales had been forecast to rise 0.8%, based on a poll of Wall Street Journal economists.
Retail sales are a large part of consumer spending and offer an indication of the strength of the economy. Before the increase in April, retail sales had fallen in four of the previous five months.
Retail sales rose relatively strongly at 0.6% in April excluding the components of car dealerships and gas stations.
The increase in retail sales is unlikely to signal the start of a sustained upward trend. Interest rate hikes orchestrated by the Federal Reserve to tame high inflation have slowed the economy and curbed consumer appetite for more expensive goods.
Yet a very strong labor market and rising incomes are likely to keep retail consumer spending high without a recession. Americans still spend a lot of money on services like travel and recreation.
The US dollar index, which measures the US dollar against six major currencies, was slightly firmer after the data was released despite being in a shrinking phase, with a 0.03% decrease at 102.235 trading.
