U.S. retail sales stalled in April, “check effect” exit

The U.S. Department of Commerce announced on the 14th, total retail sales in April and March unchanged, lower than the economists expected growth of 1.0%, compared to March’s increase of 10.7% (revised) fell significantly, mainly because last month’s retail sales growth is too fast, pulling up the base period, but also shows that the “check effect” ended, consumers tend to calm.

After deducting automobiles, last month’s retail sales fell 0.8% from March, lower than the market estimate of an increase of 0.6%, more than in March, an increase of 9% (revised) significantly reduced; after deducting automobiles and gasoline, retail sales also fell 0.8%, less than the expected increase of 0.3%, more than in March, an increase of 8.9% (revised), showing a significant decline in general product service sales.

The most popular control group retail sales fell 1.5%, less than the estimated 0.2% decrease, also worse than the March increase of 7.6% (revised). Control group retail sales are used to calculate consumer spending in gross domestic product (GDP).

Economists say many households received a $1,400 per person government bailout check last month, and with the Biden administration handing out increased unemployment benefits, the one-time effect is now waning and consumption will return to normal.