Retail sales in the United States continued to grow in April, showing that consumer spending remained steady even as households faced persistent inflation and higher borrowing costs. The latest data added to signs that the U.S. economy is still holding up despite slower growth concerns.
According to a Reuters report, retail sales increased 0.4% in April after a revised 0.7% rise in March. Economists said part of the increase reflected higher prices, particularly for gasoline and food, rather than a major jump in consumer demand. Consumer spending continues to be a key driver of the U.S. economy.
Higher fuel prices linked to Middle East tensions helped boost gasoline station sales, while spending at restaurants and bars also rose. The figures suggested many Americans were still willing to spend on dining and leisure activities despite ongoing inflation pressure.
However, some areas showed weaker demand. Sales at furniture, electronics, and department stores declined, reflecting more cautious spending on nonessential goods. Analysts said elevated interest rates are leading many households to limit discretionary purchases.
The report is expected to support the Federal Reserve's cautious approach toward interest rate cuts. Although inflation has eased from earlier highs, policymakers remain concerned that strong consumer spending could keep price pressures elevated in the coming months.
