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Total retail sales rose by 0.9 percent in April, following an increase of 1.4 percent in March and an increase of 1.7 percent in February. NAFCU Chief Economist and Vice President of Research Curt Long analyzed the report in a new NAFCU Macro Data Flash report.

"Retail sales saw sturdy growth for a fourth consecutive month in April, and a large upward revision to March further cements the case that despite weakness elsewhere in the economy, the American consumer is still as healthy as ever," stated Long.

Sectoral performance was mixed in April. Miscellaneous store retailers were the biggest winners in April with 4.0 percent growth in sales, followed by motor vehicle and parts dealers (2.2 percent), nonstore retailers (2.1 percent), and food service and drinking places (2 percent). Gasoline stations were April's biggest loser (-2.7 percent), followed by sporting goods/hobby/musical instrument/bookstores (-0.5 percent), food and beverage stores (-0.2 percent), and building material/garden equipment and supplies dealers (-0.1 percent).

Year-over-year growth in retail sales were up 8.2 percent during the month. Control group sales – which excludes auto, gas, and building material categories – were up 8.9 percent from a year ago.

“According to the Commerce Department, growth in services spending rose each month in the first quarter, while spending on durable goods fell in February and March,” added Long. “This may be the start of the long-awaited pivot back to a more familiar spending mix from the COVID era's goods-oriented consumption pattern.

“Strong sales data should reassure the Federal Reserve that it has the space to raise rates without tipping the economy into recession,” concluded Long.

For more up-to-date economic updates from NAFCU's award-winning research team, view NAFCU's Macro Data Flash reports.